Budgeting is about understanding where your money goes!

WHAT ARE YOU SPENDING YOUR MONEY ON?

FIXED COSTS – those bills you must pay on time and must be paid before anything else, for example:

• Mortgage
• Credit Cards & Loans
• Utilities – (water, power, rates, phone, sky)
• Insurance

VARIABLE COSTS – some of these costs are necessities and do need to be budgeted for. Some will be more recreational spending and amounts will fluctuate each month, for example:

• Food
• Entertainment
• Clothing
• Hobbies
• Sport

HOW ARE YOU SAVING?

• Identify these goals; short, medium and long term goals
• Remember to put money towards savings goals
• Save small amounts to start with – understand your spending
• Understand the best use of your credit card
• Consider the interest charges on all of your accounts
• Do not dip into your savings unless this is an emergency