Category : Articles

Managing your money

  • Planet Wealth
  • July 8, 2020

Budgeting in plain English

What is a budget?

A budget is a plan that works out how you will manage your income and expenses. Maintaining a budget is a powerful way to control your money.

Do you need a budget?

A budget allows you to see how much money is coming in and going out. It helps you ensure there is enough money to cover your expenses and is an effective way to make sure you are not spending more than you can afford. More importantly, a budget can help you work out how much of your income you can put towards saving for your future, without impacting your everyday needs.

Everyone can benefit from having a budget. The purpose of a budget is not to make you go without or to force you to save. It simply allows you to manage your money in a more controlled and effective way and to understand where you are spending your money.

How do you start a budget?

Write down your normal income and expenses over the period of a month. Income can be grouped into categories such as work and income you receive from investments or other sources. Similarly, expenses can be grouped into categories such as food, clothes, entertainment and so on. This makes it easy to see exactly where your money is being spent.

 

A budget can help you decide what you want to spend your money on, and how much you can save.

Making your budget work

This step-by-step guide will help you build a budget that works best for you. If you have combined expenses with a partner, it is important that you work it out together.

Sticking to your budget

Be realistic

If your budget is too strict, it will be harder for you to stick to it.

Spend less than you earn

If you have a cash deficit, review your expenses and cut back where you can.

Include your goals

If you are planning an expensive holiday (or other savings goal such as home renovations or a new car), include these expenses in your budget and start saving.

Review your progress

Check how much is left in the bank each month and how much you have spent. Compare this with your budget to see how you have fared. If your budget differs from reality, you may need to make some adjustments.

Reward yourself

Managing your money in an effective way takes practice. When you are comfortable that your budget is accurate and you are able to stick to it, reward your hard work and treat yourself!

 

What if the unexpected happens?

Life always has a way of throwing us surprises. The financial consequences of these should not be understated. Try to keep a buffer in your budget so that when this does happen you will be able to minimise any financial strain.

Remember, if something does happen that turns your budget upside down – don’t panic. Staying calm and working out how to manage unexpected circumstances is the best way to regain control of the situation

Getting Expert Help

We can work with you to create a customised plan to and budget that work for your specific goals

Talk to us today

Planet Wealth Pty Ltd (ACN 137 467 362) as Trustee of the Planet Insurance and Financial Planning Unit Trust ABN 15 757 194 605 is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.

Any advice contained in this document is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Before making any decision, you should consider the appropriateness of the advice with regard to those matters. If you decide to purchase or vary a financial product, your advisers, our practice, AMP Financial Planning, its associates and other companies within the AMP Group may receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details. If you no longer wish to receive direct marketing from us please call us on the number in this document and if you prefer not to receive services information from AMP, you may opt out by contacting AMP on 1300 157 173. To view our privacy policy visit www.amp.com.au

Starting A Family

  • Planet Wealth
  • May 28, 2020

A new baby means surprise, anticipation, awe —and some major financial changes.

Exciting times ahead for you

Ask any parent, And they’ll agree— the birth of their first child was a life-changer.

First you’ve got to get the nursery sorted: crib, furniture, painting and decor. When bub arrives, there are day-to-day costs like nappies and clothes. And then there’s the potential cost of a different car or larger home.

Many parents say they’ll just ‘make it work’ financially. But making it up as you go along isn’t ideal. To manage these changes, and maintain some work—life balance, you’ll need to set new goals.

Weighing up the issues

There’s a lot to be explored well before the birth date. For instance, have you considered whether you’re eligible for government benefits? Should you renegotiate either parent’s employment package to include childcare or a new car? Does your company super plan include the right insurance? Is there another type of insurance which fits your new family’s needs?

Eligibility and payment levels vary considerably. You’ll want to assess the impact of any parental leave payments on the family income, and how long that situation will continue.

New baby = new budget

With or without paid parental leave, many mothers plan to return to work.

If both parents are back at work, the family needs to budget for the cost of childcare. This expense can be bigger than expected. Regardless of school choice, it’s a good idea to also start putting aside something for their future education. A realistic budget, one which helps you plan for your new needs and responsibilities, is an important first step.

Getting help from an expert

New parents have plenty of support and expertise to draw on if they feel they need to. Doctors, health centre Staff, parents, family members, and even online parents’ groups can lend a hand.

Just like you draw on the parenting expertise of these people, you can draw on our financial expertise to assess your financial needs and help you plain for the future of your new family.

We can walk through the issues with you, and work together with your accountant if tax questions come up. This will ensure you can provide your family with all the essentials, from recurring monthly expenses to future education costs and income protection. This will give you some peace of mind, and leave you free to prepare for the happy arrival.

Getting Expert Help

We can work with you to create a plan to help give you the peace of mind from the day you announce your happy news, to the day your little ones leave the nest.

Talk to us today

Planet Wealth Pty Ltd (ACN 137 467 362) as Trustee of the Planet Insurance and Financial Planning Unit Trust ABN 15 757 194 605 is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.

Any advice contained in this document is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Before making any decision, you should consider the appropriateness of the advice with regard to those matters. If you decide to purchase or vary a financial product, your advisers, our practice, AMP Financial Planning, its associates and other companies within the AMP Group may receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details. If you no longer wish to receive direct marketing from us please call us on the number in this document and if you prefer not to receive services information from AMP, you may opt out by contacting AMP on 1300 157 173. To view our privacy policy visit www.amp.com.au