Budgeting 'can help boost savings accounts'

Budgeting has been advocated by one expert, who advised people to start cutting back in order to boost their savings accounts.

Jennifer Brookhouse, director of Strategy Steps, spoke to the Sydney Morning Herald about the benefits of planning ahead.

She explained that while creating a financial plan can be time consuming and confronting, it could help change patterns of behaviour that cause people to lose money.

It can also help plan for long-term finances, such as how much could be saved for retirement, as well as assessing how much cash would be needed to have a child or pay for education.

"Budgeting can assist in achieving long-term goals, such as reducing your debt to own your own home sooner, saving to buy a home or pay for a holiday or wedding," Ms Brookhouse noted.

People may also be able to add a little extra to their bank accounts and high interest savings by selling their unwanted goods.

A report on news.com.au cited an eBay spokesperson as stating there is as much as $3,000-worth of clothing, accessories and electronics in the average home.

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