Manage Your Finances with Budgeting

With the start of another financial year, it’s the perfect time to start thinking about your finances. The Crest team believe that everyone can benefit from tracking their finances. To help you with this, we have a free budgeting tool to get you started. If you need further assistance with your budget, talk to us and we will be happy to help you.

What is a budget?

A budget can seem daunting but it isn’t about restrictions. It’s about helping you get the most out of your money and achieve your goals. A budget helps you view how much you earn and how much you spend. You can personalise your budget to suit your specifics or preferences. Using the Crest Budgeting Tool, we provide you with options to get started.

Why have a budget?

To achieve goals, it is essential to know how much you earn and how much of this you spend. The idea is that the money spent isn’t greater than the amount earned. These are four benefits of using a budgeting tool:

1. Limit/Avoid Overspending – Without a budget, it can be difficult to know if we are overspending our hard earned money. Looking at expenses and what we actually spend money on, can give clarity on how much of that can be put aside for bills or goals like a holiday.
2. Save Money and Avoid the Worry – If you don’t have a budget, you are more likely to save less. Keeping track can help save money to live comfortably now and even for future financial freedom.
3. Puts you in Control – Using a budgeting tool like the one Crest provides, gives a clear picture of where your money is going. You can prioritize spending and prepare for the future. This is especially important for understanding that you need to put aside money for retirement and for when emergencies happen.
4. Achieve Goals – If you are overspending or are just thinking about bills, it can be hard to remember to put some money aside for those goals you have in mind. Track your expenses and earnings so you can put some of this aside to achieve your goals.

How do I budget?

Crest believes you should focus on a few key ideas when it comes to budgeting.

• Don’t spend more than you earn
• Include your goals so you can put a portion towards these
• Make sure it isn’t too strict otherwise you will find it harder to stick with
• Remember to reward yourself
• Keep a buffer in case unexpected events happen – don’t panic be calm and rework the best way to manage them.

Remember, a budget can be flexible to suit your changing circumstances. If you would like to download our free Budgeting Tool it is available here.

If you would like assistance or to discuss your budget, please do not hesitate to contact the Crest team.

Teaching Kids How to Budget to Become Financially Savvy

David and Libby Koch share their tips on teaching kids about budgeting and developing sound money skills. This video was developed in partnership with the Koch family and Father Chris Riley’s Youth Off The Streets. For more information, visit MoneySmart by ASIC at http://www.moneysmart.gov.au.