There are many benefits of having a household budget.
It helps to lower stress, prepare for emergencies and allows you to take control of your finances and achieve your goals.
But…if a budget is too rigid there’s a high chance it just won’t work for you and your family.
Budgeting takes discipline and often a change in mindset, lifestyle and habit.
We’ve writing before about why budgeting works….sometimes. And you can read about some of the most common reasons that budgets fail in our blog.
With all this in mind, we want to help you to build a ‘budget’ that does work; allowing you to foster a positive and proactive approach to money matters, and ultimately providing you a sense of financial wellness.
At Hub Advisory Group we do this through a ‘Spending and Savings Plan’.
Rather than reflecting on where your money has been going - how often you’ve been shopping and how many coffees you’re buying per week – it looks at your fixed costs.
Establishing your fixed costs allows you to determine how much you actually need to ‘live’ – including expenses like rent or mortgage repayments, personal loans, utilities and health insurance.
From here you can look to add discretionary spending into the plan, gaining a clear picture of what you can and can’t afford above your fixed costs. And within that discretionary expenditure you can focus on your spending and saving priorities, such as a family holiday, for example.
Our tailored spending and savings plans create a dynamic document, meaning it can be adjusted over time, in real time, as costs increase or your priorities change.
If you’d like to discuss the steps to building a spending and savings plan, and having a positive approach to your finances, contact the team of Financial Advisors at Hub Advisory Group on (02) 4926 8000 or email contactus@hubadvisorygroup.com.au for an appointment.