Planning a family budget

Do money worries keep you awake at night? Do you know exactly where your income goes to? Do you know how much money you need to fork out this month or in six months’ time? 

Few of us were taught money skills at school and for some, “budgeting” is a dirty word. However, being able to manage our money and save up for things, like monthly expenses or perhaps a family holiday – even if it’s just a night away – can be a reality if we take control of our spending.  If we can manage our own money, we can also pass on the skill to our children, which may help them to avoid financial worries in the future.

Are you brave enough to take up the challenge? 

1)    Be honest with yourself

What’s your weekly income and how much do you really spend? This is the first step to getting a better night’s sleep. A simple spending plan is all you need.  See Kingdom Resources’ spending plan at www.kingdomresources.org.nz/1/content/blogsection/8/43/.

2)    Be ready for a change in lifestyle

If expenses exceed your income there’s generally only two ways to fix it: increase your income or reduce your lifestyle – or both.

3)    What do you need to save for?

Car registration, warrant of fitness, winter power bills, school trips, birthdays and Christmas come each year but often creep up on us. Work out how much you need to save each week in order to pay for these predictable costs when they come up. If your income allows, put aside money for unexpected costs too.

4)    Increase your income?

Can you increase your income? Is overtime available at work?  Don’t borrow from your retirement plan if possible, because you’ll need it later.

5)    Getting rid of debt!

In your spending plan, try and pay off your smallest debt first, while making minimum payments for all the others. When one is paid off, work on the next smallest one. How about holding a garage sale or putting items on TradeMe to help pay off debt?

6)    Control your petrol, power and food costs

•    Petrol
Can you avoid using the car?  If not, make sure you keep your supermarket receipts to get a minimum of 4c a litre at the pump. Check tyre pressures, keep windows closed, remove that roof rack and cut speed (if you can). If you are buying a car, remember the bigger the engine, the thirstier it will be.

•    Power
“Level Pay” or “Smooth Pay” can really help you budget so you know exactly how much you’re paying for power each month, and can help you avoid big bills in winter. For useful tips visit www.energywise.org.nz or check out www.whatsmynumber.org.nz  to see whether switching power companies could save you money.

•    Supermarkets
Surveys tell us that about 40 per cent of what we buy isn’t even on our list. Supermarkets are full of tricks to entice us to spend – more expensive items are often found at eye level or at the end of aisles, while things we really need are often hidden on the bottom shelves.   Check “specials” too, as they aren’t necessarily the best buys. 

If you need help with a spending plan contact a budget advisor; their services are usually free. Visit www.cbnz.org.nz to find one near you. If you live in Christchurch, you can phone Kingdom Resources on 03-332-1700. This office is also an Earthquake Recovery Information Kiosk.

Article written by Kingdom Resources Ltd, offering free budgeting and employment services to Christchurch, North Canterbury and Ashburton.  Email: zn.gr1337370614o.sec1337370614ruose1337370614rmodg1337370614nik@r1337370614k1337370614