A quick guide to a mid-year family budget refresh

Creating a budget can challenge most of us, especially as we try to break the cycle of living paycheck to paycheck. It’s not easy! We all have everyday costs but then many of us also want to cover a holiday or repayments on a new car. These things add up.

And given the constant rise in prices on almost everything, the economic climate is a bit stressful, too. 

So where to next?

Maybe you started off the year with high expectations but those plans aren’t working out. It can be difficult to start from scratch, we get it. So below let’s turn things around - we’ll revisit your budget and refresh your budget thinking.

6 ways to spruce up your start of year budget:

• Track your income - and don’t just track but know what it is! The point is that your income after taxes and other deductions such as super need to be factored in when saving money. Simple but important. 

• Write down your priorities - this is about knowing what needs to be tackled first and what can go on the backburner. For example, maybe paying off your student loan is more important to you than buying a car. So focus on that. 

• Have a rule - heard of the 50/30/20 rule? It’s about dedicating the largest chunk of your money towards your needs and non-negotiables - or 50% of your income. Must-pay items include bills, the home loan or student loans. Then 30% goes to your wants and desires, say drinks out or taking a day trip. The last bit? 20% should be left for the savings. But choose what works best for you. 

• Track your financial goals - keep an excel sheet handy if that works for you. Mark off your weekly/monthly goals when you achieve them and don’t forget to keep a little treat for yourself at the end for some incentive. 

• Create an emergency fund - feel at ease with money you can fall back on if something comes up. Always best to expect the unpredictable. 

• Lastly, don’t make strict rules - always allow room for things that make you happy, like seeing a movie you’ve been waiting for or brunching at a favorite restaurant. Positivity can help!

Finally, be sure to have fun with your budget, it doesn’t need to be serious, just practical. And if you’re needing help with finding a good savings account to park your money, our experts have done the hard work for you by comparing what’s on the market. You can start comparing some of the best savings accounts below! Good luck.