Budgeting Tools
Why I developed my own calculators
As a qualified Financial Adviser, I am passionate about everything that is related to money. In my co-authored book ‘Read My Lips’, I have outlined how important it is that people budget their money to get themselves financially organised. Years ago when I started preparing my personal budgets on the computer, I looked for excel spreadsheets to save me time and money….more recently the internet has seen the rise of ‘free budget spreadsheets’ available from various banks and loan companies. I was constantly disappointed in the lack of information included in these so called ‘free’ spreadsheets so I decided to prepare my own. In addition, my clients were always asking how I maintained and tracked my own personal finances so I figured I would improve the one I originally developed (always use and love!) and take it to a financial modeling/ building expert (thanks Leonie) to finalise it ready for others to use.
I have kept these modeling calculators very easy to use (no need to have computer or excel experience), with high excel functionality (pretty charts and graphs too) and very affordable so there is no excuses for poor budget planning!
The best benefit of using my Budget Planner is that your income and expenses are easy to track and monitor. It will give you a great overview of your finances and where all that ‘hard earned’ money goes! In fact, the most popular feedback I receive is that budgeting journey is surprisingly motivating and people are feeling ‘decluttered and organised’ when it comes to their money! This budget can be used to Get out of Debt, Save for Investments or Something Special (ie. Wedding or holiday), it doesn’t take long to set up and you are on you way to seeing where you can improve your quest for financial freedom.
Budget Planner
Find out where all your hard earned money goes! Track your expenses, identify spending habits easily and compare spending verses your budgeted allowance. The model includes an expenses summary as well as daily tracking and monthly tracking (for those highly organised individuals) as well as a summary so you can easily monitor where your money goes.
Personal Balance Sheet – Net Worth Calculator
A quick snapshot of what you ‘own’ verses what you ‘owe’. Your Net Worth is the value of all your assets less your liabilities. This calculator is the best way to measure and track your financial well-being.
Tax Calculator
Work out an estimate of your income tax liability according to the Australian Tax Office (ATO) personal income tax scales.
You can download the Tax Calculator for free by clicking on the link below.
Website Tax Calculator July 2010 (13 KB)
Note: The results from this calculator should be used as an indication only and you should consult your Tax Specialist or Accountant for further information.
My 9 Budgeting Tips
Every day we get lots of people emailing with questions on how to prepare a household budget. It has been my experience that you are either a budgeter or you are not! Some people are very comfortable with their spending habits and others have no idea where the money goes each week!
Below is a list of simple budgeting tips that may help when preparing a budget for yourself or your family.
1. Be realistic. This is the hardest part of budgeting I believe. Initially, when you need to work out how much you will spend on certain items (ie. clothes, alcohol, going out etc), most people believe they don’t spend very much.....but please be realistic....go through your most recent credit card/bank account statements, how much do you really spend? Sure, we could all save heaps if we didn't have to eat or entertain ourselves....if you can reduce the spending in some areas of your life that is wonderful but be realistic otherwise it will be too hard to follow and the whole idea of a budget is to stick with it!
2. Track your actual/real spending. Don't fall into the trap of setting up a detailed budget and then forget to track against it. Track your spending daily, weekly, fortnightly, monthly, whatever suits you - just make sure you're tracking what you actually spend! This is the key to finding out where you are overspending or underspending each month....you can correct any bad spending habits that way (see Tip 4). Also, don’t shirk away from the truth, it’s the little daily purchases that add up too – the cup of coffee, lunch sandwich, chocolate bar, magazines etc.
3. The reason you have a budget is to try and save money or pay down debt. You're doing this for a reason- make it count. Learning where you spend your money and ways you can cut back on that spending is an amazing feeling, it really opens your eyes to just how much money is wasted that could otherwise be paying off your debts or going towards savings….ideally, try and save 5% of your income each month.
4. Correcting bad spending habits. You've invested your time into a budget spreadsheet, now make it pay off. Learn from your past mistakes and be disciplined going forward. Remember, rich people normally have their finances under control!
5. Plan for the unexpected. Make sure you put aside some emergency funds for unexpected events (medical bills, car repairs, job loss etc.) while you are at it, consider insuring yourself, your property and your income.
6. Focus on a single financial goal. Put your goal on a vision board, on the front of the fridge or bathroom mirror to remind yourself why you are doing this....if you fail to stick to your budget in a particular month, treat it as a lesson learned - not the end of the world.
7. Stick with simple budgeting tools. Don't get lost with the latest and greatest budgeting software - the more ‘bells and whistles’ the program has the more confusing. Keep it simple – that is why you picked this budgeting tool right?
8. Don't let your budget rule your life. The world is stressful enough today, it doesn't need any help from you. Stick to your budget as best you can, learn from your mistakes and try to improve each month going forward. After time, you will find the whole thing a piece of cake and see your financial gains in a snapshot
9. Saving is simple. Saving can be as easy as setting up an automated deduction from your bank account – then you learn to live on the rest! Ultimately, the message here is simple.....spend less than you earn!
This information has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances.
