The Benefits of Budgeting

Setting Personal Goals


Setting a series of personal goals will help you stick to a long-term budget plan. Before any goal can be met, it must be clear why the goals are important and how you intend to achieve it. By listing your own set of needs and wants, you can see at a glance the level of commitment needed.

Your personal goals are not set in concrete. They can be revisited at any time, but they serve as encouragement and incentive to continue budgeting.

By setting aside a few hours to draw up a firm but flexible budget, you can improve your cash flow. By creating a snapshot of incomings and outgoings you can target areas where spending is out of control and set a clear path for saving.

Do not view your budget as restrictive — taking the fun out of life — a successful budget can actually free up funds and help make the pleasures in life a lot easier to attain.

PIGGY No budget is sound without a savings plan. You must incorporate long term saving in your budget. having a sound banking relationship begins with you saving and investing. Our financial makeovers help you create the foundation you need.
You Must Save

Every one of us works very hard for the money we have earned, wouldn’t you want that money to be the safeguard of your future and grow?   Studies show that many Americans are spending more than they save. With our uncertain economy, it is important that consumers understand the value of saving and the proper conservative way to manage one's finances and make appropriate financial decisions for the future.

On a day-to-day level:

• Having a reasonable balance in a savings account frees you up from the stress of living from one pay day to the next and gives a great sense of security
• In difficult times or in case of emergencies you can access savings instead of using high interest credit cards

As you continue to set aside part of your income, and include saving as a part of your ongoing financial plan, your savings balances will grow and offer far-reaching benefits.

In the medium term:

• A regular savings routine establishes a financial track record — essential when you apply for everything from a credit card, to a car or home loan
• You can reach those apparent ‘unreachable’ goals like a holiday, a computer for the kids, or a new car

In the longer-term:

• Savings can help supplement retirement income
• Savings that are left untouched have the potential to improve your quality of life

A portion of savings can be channeled into other longer-term investments like the share market and managed funds — investments that may provide extra household income and also grow over time (however, there is a risk involved in this type of savings)

mnyb. . . Breaking Bad Spending Habits

We are a nation of spenders, not savers.

While most of us would like to save more, it is all too common for an unexpected bill to turn up which has not been budgeted for, or for the spending urge to overtake us at a department store.
Controlling spending is one of the first steps in creating a successful budget. Take a look at your levels of spending. In fact, take a good look. It may not be pleasant, but think about how much you have spent in the past month.

Were there any impulse buys? Did you make an excessive number of trips to the supermarket that ate away more money than intended? Did you spend any money that was set aside for ‘serious’ demands?

Chances are there are one or two spending glitches that spring to mind. Spending is one of the easiest activities in our daily lives. It has been made easy through automatic teller machines at the supermarket and vast amounts of credit. There is nothing wrong with spending, but if you do have areas of weakness, you should try to identify them. Take The Spending Quiz




Needs are the things you require to live a basically healthy life (for example, housing, food, clothing, transport, electricity, basic education etc).


Wants are the things you would like to have in order to improve your quality and enjoyment of life (for example, jewelry, eating out, holidays, fashionable clothes, a bigger house or car, etc).

How often do you dread reaching into the letter box to find another bill? On the other hand, how many times are you financially ‘caught short’ just before payday? These experiences are not confined to households on lower incomes.

Regardless of the size of the paycheck, many of us tend to live slightly beyond our means.

We would all like to free up more cash for dinner with friends, for family holidays or trips to exotic destinations, or even to buy a new piece of furniture. A well-designed budget will put these kinds of activities more within your reach.

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