Budgets need to breathe! A tight budget is harder to stick to, so it's important to be realistic.
How to build a budget
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.
– We’ll need details of any regular savings we already have.
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!