Budgeting Basics: Part 2

Banking & Payment Structure

Structure your Bank Accounts

1. Set up 3 accounts:

   • Income/Spending

   • Bills

   • Savings

2. Set up automatic transfer from:

   • Income/Spending account to Bills Account

   • Income/Spending account to Savings Account

3. Set the above transfers up to automatically occur after salary/wages/benefit goes into your Income/Spending account.
   The amount to transfer will come from your budget.

   • Set up automatic payments to pay for your bills

   • Set these up from the Bills account

Set a Savings Goal

• No matter what your income, it is best to put money aside for emergencies.

• The words “I deserve it” are real savings stallers.

Shop Around

• Budgeting requires thought and reflection.

• Be aware of the cost of items/services/utilities.

• Review utility, insurance etc costs periodically.

• Compare retail goods pricing before purchasing. Get more than one quote for

repairs, maintenance and renovation.

• Ask yourself “do I need it or just want it?”

Be Honest with Yourself

• It’s all too easy to come up with excuses why you’re different?

  • “My morning coffee is my sanity time”

  • “I buy takeaways because I work long hours”

  • “Coca Cola really is an essential grocery item”

  • “You need a new car because the old one “might” break down”

• Are you really, from the bottom of your heart, being honest with yourself?

Supermarket Spending

• Learn what an “essential” item really is

• Understand the difference between want and need

• Writ a list and still co it

• Plan meals ahead

• Look at the unit price on everything you purchase

• Don’t shop when you are hungry

• Take your supermarket money out and shop with cash – when it’s gone its gone