The essentials for effective budget planning
Identifying all your income, expenses and financial goals is an important step in gaining control of your life and finances. A plan to guide you is important in making any budget work.
A good budget plan should include:
- Details
of your income and expenditure - include all sources of income and spending
such as rent, food, bills, and transport costs. The difference between
income and expenditure will determine how much you can set aside to
reach your savings goals. Remember to be realistic and include all appropriate
information
- Short-term
and long-term savings goals ie the things you want to buy (not need
to buy)
- Priorities
for spending, to ensure your day-to-day living costs are taken care
of first
- Details
of your savings plan ie how much you plan to save each week or month
to reach your goal
- Banking
- include details of your accounts and what they are to be used for
- transactions or savings, list all your automatic payments and direct
debits and the dates they are due. There are a wide range of banking
products available to you and we have included some advice in this brochure
on how to ensure you are getting the best out of your accounts
- A method for monitoring your spending - this could be your bank statements
For further budgeting advice contact the New Zealand Federation of Family Budgeting Services (NZFFBS). Look under "Budget Advice Service" in the White Pages or contact the Citizens Advice Bureau (details below) and they will put you in touch with your nearest NZFFBS office. Experienced advisers are available free of charge and consultations are strictly confidential. Remember - you don't need to be in trouble before reviewing your financial situation.
Your local Citizens Advice Bureau also offers free, independent information and advice on general financial matters, including your rights as a consumer. Call 0800 FOR CAB (0800 367 222) or contact your local CAB.
