"I just don't know where the money goes!"

Budgeting Money

The importance of learning to track your money

Learning and developing the skills of money management is the catalyst behind you taking control of your finances and then leading you to untold wealth and financial freedom.

Understanding where your money's going every week allows you to develop important and essential controls as to where and what you can spend so as to stay top of your finances, especially if you're on a set income (as many are).

Planning ahead and keeping track of your personal finances will not only help you save money for all life's luxuries, be it a new plasma, car, holiday, home or maybe just school fees, etc., but will also relieve all the daily stresses of even the mundane tasks such as bill paying.

The 5 Minute Money Manager personal money management tracking system is so easy that you will instantly have a simple and effective tool that will assist you in achieving your goals whilst ultimately helping you manage your personal finances with confidence.

Finding the Balance

There are truly only two ways to improve your financial circumstances. Spend less or make more money. "Easier said than done" I hear you say, and you're absolutely right. That's why learning to budget and control were your money goes really comes down to understanding your actual net Income (After tax income) vs. your actual daily Expenses, and how the two balance against each other. Ultimately, you'll need to identify if your income is enough to cover your expenses (more often than not it isn't).

It's okay, it's not your fault

Now at this point I would like to congratulate you and welcome you to the largest club in history. This club has many disguised guests, you included. The reality is that less than 6% of Australians manage their home finances. So that leads to the question: WHY?

Well the answer is simple. You haven't been taught to. That was simple wasn't it? The lack of access to useful information or tools that can be used by "normal people" have truly been lacking and, let's face it, it's not something that wakes you up on a beautiful sunny morning saying to yourself "I must get up and do my budget". In reality it is generally for boring for most people or even a little scary.

You have also been sold on years of BUY NOW pay in 4 years (not mentioning any names). This has been drummed into us so frequently by the advertisers that we now see it as normal. Leaving most of us in eternal debt and never being able to get ahead and in control of our finances.

Planning Ahead

Do you look forward to a holiday? Do you think about where you're going and plan ahead? You know, "must get new swim suit…are the passports current? Has little Johnny had his shots?".

Well, taking control of your finances is no different.

As you start to understand where you are spending your money each week you can plan for new purchases or even unforseen circumstances that are out of your control like sudden vet bills or interest rate rises. This takes you from financial stress and possible arguments about money to being in total control and ultimately stress free.

Knowing when your income comes in and when your expenses are due are two of the biggest keys to budgeting money, and by spending just 5 minutes a week you can track both, helping you know exactly where your money goes (and when).

5 Secrets Tips of the best budgeters

• Examine each purchase for its value to your life. Is it absolutely necessary? Do you need it or just want it? Answering these questions will certainly help you with your budgeting. Re: Look at your initial goals and see if it identifies with the order you put them in.
• Avoid impulse buys - shopping around and taking some time to consider a purchase is integral to sticking to your budget.
• When going to the shops casually DON'T take your credit card or ATM card.
• Set aside a portion of your income to be put into savings, even if it's only a small fraction of your income, it will give your budget more structure and help you plan for the future. It will also start a habit which will give you great satisfaction next time you buy something with cash.
• Keep track of roughly how much in bills and recurring expenses you have and then set that money aside to prevent it from being spent on anything else.

More information on your personal finances, tips on saving money, or just general financial advice in addition to our 5 Minute Money Manager software will help you with budgeting your money and sorting out your financial life.