Bud­gets need to breathe! A tight bud­get is harder to stick to, so it's im­por­tant to be re­al­is­tic.

How to build a bud­get

Parenting - - Real Life -

To cre­ate a bud­get, we sim­ply add up how much money is com­ing into the house­hold (our in­come), and how much is go­ing out (our spend­ing), then work out the dif­fer­ence.

The re­sult is ei­ther money left over (a sur­plus) or not enough money to cover our spend­ing (a deficit). The aim is to get a sur­plus so we have some money left in our pock­ets to save for our goals or pay off debt faster. A bud­get needs to be ac­cu­rate or it won’t work. We can’t fudge it! Here’s what we’ll need.

• In­come info

– This in­cludes any money such as pay, ben­e­fits or al­lowances, NZ Su­per or in­ter­est earned on sav­ings.

• Sav­ings

– We’ll need de­tails of any reg­u­lar sav­ings we al­ready have.

real life

Add up in­com­ings, out­go­ings, and find any­thing ex­tra Make a spend­ing plan Let your bud­get breathe Fol­low the flow and see how you’re tracking to plan Cel­e­brate when you hit sav­ings goals


Un­der­es­ti­mate how much of a dif­fer­ence this will make for you For­get to en­joy the bath, ei­ther!

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