'Budgeting' the key to staying afloat

The global economic situation has led many people to re-evaluate their monthly comings and goings in order to manage their finances a little better.

Same have decided the best way to stay afloat in the harsh climate is to get a credit card, especially those younger consumers that had only really known times of prosperity before the global financial struggles.

Indeed, financial planner, university lecturer and author of Take Control of Your Money Barry Lizmore said rising expectations is a particular issue for young Aussies who have only known a growing economy.

"In our parents' day, people didn't take out high mortgages and they made do with a second-hand car. We used to holiday [down the coast] or in Queensland. Now we holiday overseas," he said.

It is hoped that the inaugural MoneySmart Week will help to encourage people to budget in order to get their finances in good shape.

The scheme was launched on Sunday (September 2nd) and provides consumers with a chance to run a health check on their own finances, where they can see if the way they deal with debt and various other issues is as good as it can be.

By entering information into the online tool provided by the Australian Securities and Investments Commission, people will find out if they are in the green zone, which indicates your finances are under control.

National manager for advice at ipac John Dani said it is best to ensure you lower the limit of your credit card so you are less reliant on them in the long run. This will help to keep on top of your finances.

"Budgeting is under direct threat now due to easy access to debt, eftpos, online shopping and our ever-increasing expectations about lifestyle," Mr Dani was quoted as saying.

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