Write up a budget to identify opportunities

Budget…. Is not a dirty word.

When we say budget we don’t mean cut out all the niceties – we mean understand where your spending is going and make intelligent decisions.

All of us have a black hole in our expenses – something we don’t understand and wouldn’t want if we did. Exposing the black hole allows you to make a decision – it has value to you or not. Similarly it may show you where you’re spending too much on fashion or utilities or insurances that can be adjusted.

There’s a meme circulating the socials “what does it take to waste $10,000 a year?”, the answer is $27.40 a day – which could easily be trimmed from most people’s expenses.

So how do you go about it?

· We have a budget calculator on our website https://www.tworedshoes.com.au/budget-planner

· As does moneysmart – a site sponsored by the federal government https://moneysmart.gov.au/budgeting/budget-planner and this one you can save and return to to test your adjustments

· But the key is understanding – not guessing – so download an excel file of your bank statements for the last 3, 6 or 12m and add a little code beside each transaction – groceries, utilities, transport etc. This gives you a factual picture of what you have spent.

· We have software that can do this for you and commences the categorization – happy for you to reach out and ask f