Budgeting for the expected & unexpected circumstances – Part 2
By Mathew Wilkshire
So, you have now completed your budget and the bottom line shows you are breaking even, or worse, spending more than you earn. For those of you who are just ‘breaking even’ you may feel like you are in control of your budget. However, do you have a regular savings plan in place and an ‘emergency fund’ for those unexpected expenses? For those of you who are spending more than you earn, your financial position can decline fast unless you address your spending habits.
It is not only important that you take control of your existing expenses, but be prepared and have funds available for the unexpected, such as:
- Increase in interest rates (home loan, personal loan, credit card etc)
- Increase in utility bills (electricity, water, gas)
- Increase in council rates
- Increase in insurance premiums (private health, car, house& contents, income protection etc)
- Speeding fines, parking tickets etc.
What are your options? Spend less and / or earn more. Increasing your income may take some time to achieve, however taking control of your expenses may prove a quicker alternative.
Solution – make a time to meet with one of our Advisors at Johnston Grocke to talk about your options. This may include restructuring your personal insurance to have the premiums deducted from your superannuation account, refinance your personal debt, refinancing your home mortgage to Fixed Interest etc. We will explore these options with you and help you on your way.