In today’s tough economic climate, it is more important than ever to budget and establish a savings plan. This is because budgeting is the best way for you to take control of your finances, save money and plan for the future.

Few individuals or families know just how they spend their money.  They know that at the end of their pay period – it is all gone.  A budget will change this.  It is the direct and sensible approach to personal money management.

Basically, a budget is a financial plan that itemises an individual’s or a family’s spending and helps accomplish short-term and long-term goals.

Its main purpose is not to get you out of trouble – although it will help.  Better still, it will keep you out of trouble in the first place.

In fact, a budget is really an essential part of everyday life. Without a budget it just is not possible to cope with those unexpected bills and to see at a glance, how you can most easily cut back you’re spending.

The ultimate aim of budgeting is to ensure that you can:

  • Adequately meet all your financial commitments and
  • Have some money left over to save.

Set a savings goal that is within your reach and will not put a strain on your budget.  Even if you begin by saving only a small amount each pay period, this will add up over a year to a respectable amount.

People with young families should aim to build up an emergency fund equal to three months take-home pay in case of retrenchment or emergencies.


  • Your savings will help you through those difficult times and emergencies;
  • If you have money saved, you can use it in emergencies instead of credit cards (with their high interest charges);
  • By saving, you will establish a financial track record, which will be important when you apply for a loan for a major purpose (house, land or car);
The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision, persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided.




Win Philips Home Appliance Package

We may get commissions for purchases made using links in this post. Learn more.
  • Having money in a seperate account for the un-expected is important!


  • Great read. I am constantly battling with budgeting in our household


  • Really good knowledge to know! Thanks for sharing this!


  • thanks for sharing – need to put this into practice now


  • Budgets are a reality we all have to deal with in one form or another. Good article, thanks.


  • Budget is a good thing to have; put away a portion every single pay and you would be surprised as to how quick it will accumulate.


  • Thanks for sharing this important information and for the tips.


  • these are great tips! thankyou for sharing! i like learning about budgeting


  • I get the pay splits set up so I don’t see the money at all, all loans are paid and money put into budget account to cover all utilities fees, then whatever is left over is for groceries/ fuel etc. Also like the rule of if it costs more than $50, then I have to think it over for 24 hours to be sure it’s something the family really needs rather than just a want on a whim!


  • I try to put aside, however small it is, just in case of those emergencies, last thing you need on your mind during a crisis where money is concerned is that you don’t have any at all. Every little bit put aside will eventually add up.


  • I really love budgeting because also it helped us to save up and pay off debts. We are nearly mortgage free thanks to our budget. We wrote down every mortal thing we spent money on and allocated it all then you quickly work out ok my pay cheque isn’t going to cover all of that so we now need to back track it. I love Anita Bells books she has it all right!


  • Small amounts can quickly amount to larger amounts.


  • Thanks for your comments. If you would like a budgeting spreadsheet have a look on the downloads page on http://www.gurneyfinancialservices.com.au or contact us and we can email you.

    Another though on how you can keep on top of your bills is by paying them weekly. Example would be paying $10 weekly to your water, $40 weekly to you rates, $40 weekly to your electricity, etc. By breaking them up into smaller managable payments, you can afford the bills when they come in.


  • well I re-did my budget and im in the red so how can someone cut down on something when everything is essential,


  • Budgets are easy…..You just need more money coming in than going out and everything will be fine. HAHAHAHHA the problem is MOST people don’t have enough for the essentials let alone putting money away for unexpected bills and emergencies.


Post a comment
Like Facebook page

LIKE MoM on Facebook

Please enter your comment below
Would you like to include a photo?
No picture uploaded yet.
Please wait to see your image preview here before hitting the submit button.
Your MoM account

Lost your password?

Enter your email and a password below to post your comment and join MoM:

You May Like


Looks like this may be blocked by your browser or content filtering.

↥ Back to top

Thanks For Your Star Rating!

Would you like to add a written rating or just a star rating?

Write A Rating Just A Star Rating