If ever there was a time to sort out your budget – it’s now.  I don’t know if you’ve realised, but things seem to be getting tighter each year. The cost of living seems to have increased but wages appear to have stagnated.

So how do you afford to keep going?

1. Fix your budget! Work out exactly how much money you need to cover your household costs on a yearly figure. Then divide it by fifty-two and you will have the amount you need for each week. If that figure comes to more than your current wage, then it’s time to either ask for a raise or begin looking for some extra income.
2. If your weekly rental has become too expensive, then perhaps it’s time to look for cheaper options. Similarly, if your mortgage repayments are too hard to handle, perhaps talking to your bank might get a better payment solution.
3. Check that you are not paying too much for all your insurances, phones or internet plans. If full cover private health insurance is too expensive, then choose what you need to be covered for instead of just accepting a one-size-fits-all cover.
4. Learn to say no. Sometimes it’s just not possible to pay for all the things you’d like. ‘Must Haves’ should always take precedence over ‘Nice to Haves’.
5. Cut back your weekly trips to the supermarket and always, always, always take a shopping list with you. Prepare a meal list for the week if that helps.

These are just five of the basic things you can do to give your money an overhaul. Whilst your finances might be a little tight at times, there is always something you can do to take that financial stress away.

The worst thing you can do is to bury your head in the sand and pretend it’s not happening.   

If you don’t know how or where to start, then for your own sake – give me a call

 

 

 

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you must make up your own mind. If you don’t like the content – then either stop reading or send me an email)

When it comes to wondering why your budget is constantly out of control, I’d suggest that you have a good hard look at your habits. It’s the little things that we do often that we tend to overlook when it comes to counting costs. And when it comes to putting money aside, a change of habits could make all the difference in the balance of your savings account. If you’re not sure what I mean, let me give you some suggestions…

Do you buy a daily coffee from your local/favourite barista? If you do, this can really add up to a significant amount.  At $4 per day this is $20 per working week which accounts for $1,040 per year. You’ve all heard people say – “it’s just one cup of coffee a day” when they’re wanting you to spend money on something else. Imagine what you could do with that money in your savings. If you buy two coffees a day, then cut back to one and bank the leftover money.

One of the biggest expenses these days can be buying bottled water. This is ludicrous when you consider that most us have access to clean running water for free. If you pay for a bottle of water every day – that’s $4 per day which adds up to $20 per working week. You could potentially save $1,040 per year if you buy a reusable water bottle. Don’t argue – just do it!

How many services like Netflix, Stan, Apple Music or Spotify are you using? Whilst $10 per month is not a lot of money it adds up to $120 a year. Still sounds reasonable? If you have more than one service doing the same thing, you need to prioritise which is more important and just have one. Many times, it’s the little amounts that add up and blow the budget.

How often do you have breakfast in a café? If you say ‘everyday’ then I am really going to slap you. At an average cost of $10 a day to have somebody else make your toast you’re spending $50 per working week. That’s expensive cereal and toast! If you got up ten minutes earlier and had something at home, you could potentially put $2,600 per year into your savings account.

Who doesn’t love eating out at restaurants! It’s certainly lovely to have somebody else cook a meal for you. If you spend just $50 per week on this, you’ll spend $2,600 per year. Perhaps cutting back to once a fortnight will help you to put $1300 into your savings account.

Going out for drinks is another habit to look at, when you want to save some money. If you go out once or twice each week and have something to eat whilst you’re drinking you could be spending $100 per week (dinner, alcohol and more alcohol). Over a year that adds up to $5,200 per year. If you cap your drinking money to just $50 per week (and stick to that) you could be putting away around $2600 per year.

I heard somebody call the taxi that you catch home after going out for drinks the Beer-Scooter. Very funny name but not a very funny habit. At $35 per week this could cost you $1,820 per year. Perhaps you could either take turns with your drinking buddies to play taxi; catch public transport or walk.

The first step in assessing the value of these daily habits is to do a time diary for a week. Write down how you spend each hour or half hour of every day. Look at the activities and ask yourself how much you spent on each activity. The ones that appear in your time -diary every day are probably a habit.

Once you know what your habits are and how much they cost, you can then make an adjustment in your budget.

It’s one of the first steps in being able to build up your savings account.

 

 

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you must make up your own mind. If you don’t like the content – then either stop reading or send me an email)

 

 

Today,  whilst thinking about two things that happen this month, both Easter and ANZAC Day, I couldn’t help but reflect on the reasons for these spiritual celebrations. (The Easter celebrations are already gone now but ANZAC Day is still to come)

In both cases we have good reason to look back and be not only thankful for those who came before us; but grateful to those who unselfishly put themselves on the line so that we can live our lives today in peace and freedom.

And then I began to wonder if they would understand the ways of the world today. What would they think about the changing times and values? Could they even comprehend our desire to ‘have it all at whatever cost’ when all we’re talking about are material possessions?

The important thing for them was the fight for basic rights for all of us – freedom and the protection of our way of life.

The important thing for us is….

Well, only you can answer that for yourself. But let me ask you this …. Did they fight so that we could destroy ourselves?

In 2015 we celebrated the centenary of the ANZACS. Perhaps whilst you’ve enjoyed the Easter break and are looking forward to the ANZAC holiday, you could spare a thought for those who went before.

Just as we’re proud of what they did for us, ask yourself if they’d be proud of what we’re doing today.

 

 

 

©  Carmel McCartin – Budget Bitch 

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

From time to time I’m asked to speak to high school students about money and budgets with a bit of common sense thrown in as well. The kids are generally old enough to legally leave school and start work.

Most people tell me that kids need to learn how to budget their pocket money, but many of the ones that I speak with, are already working part time jobs and earning substantially more than ‘pocket money’. They’re preparing for the time when they leave school, move out of home and become responsible for themselves.

So what would you talk to these high school kids about? Well, once they leave school and start work, regardless of their age, they’ve become young adults.

At a recent session, I asked the obvious question – “what does being an adult mean?”

I was pleasantly surprised. Most of these kids have definitely got a handle on what it’s all about. In lots of ways, they seemed to have more idea than some older people that I know.

They cited the major attribute of an adult as being responsible. I thought it would take a while to get this answer, but these kids certainly realised this is a major part of being grown-up. Chalk one up for the youth of today!

So then we discussed ‘responsibility’ and they listed all the areas where they would need to be responsible; for themselves, their actions, their money and then ultimately a family of their own.

In the money section, they all agreed that too much debt was not good and that paying your bills on time was important. But they didn’t have much idea of how to make their money last till the next pay day.

I wasn’t surprised; as many parents possibly have no idea either. They’d all heard the word budget, but didn’t really know what it was. They tended to regard the topic like a visit to the dentist – we’ll do what’s necessary and then worry when it hurts.

Using an example of moving out of home, we created a fictitious budget. They all had a fair idea of what rent would cost and what bills they might have to pay. Yet, they’d never before thought to add up the costs.

We included the running expenses of the car they decided that they had to have, added a couple of their ‘usual’ night out costs and suddenly they found that they need to earn an income of $50,000.

It was all looking a little grim, till they decided how to reduce some costs: Walking or riding a bike could cut the transport problems, entertain at home; cooking rather than buying take-away. These kids were starting to think very responsibly.

They decided that living at home was an alternative option and they agreed that ‘paying their way’ was a responsible adult thing to do.

And then it all got too much for one young chap. He threw his arms into the air and declared – “I don’t care what you say! It’s got nothing to do with money! If you’ve left school and you feel like an adult, then you are an adult”

I had no choice. In light of what we’d just spent the past two hours discussing, I had to say –

“Honey, if you’re over 21 with a full time job and you’re living with your parents, that’s ok. You can feel whichever way you want to feel. But if you’re not paying your way and your mother is still buying your deodorant and your underpants – then you are not an adult!”

And with that – the class disintegrated!

 

 

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

Did you know that the people who have only a pension as a source of income seem to manage their money better than people who have a job? 

Many people who are employed or have a job that pays them a regular wage, tend to possess a ‘devil-may-care’ attitude when it comes to money. The more they earn, the more they spend. 

That’s possibly because they know that every week they’ll go to work and they’ll get paid. So a lot of them figure that it doesn’t matter if they spend all their wage every week – there’ll be more money coming in again on pay day. 

The people who have only a pension to support them tend to be quite frugal – possibly because they don’t have much money paid to them.   

But have you ever thought about this – the people on pensions are actually in a more secure financial position than those who work. That’s because they get paid every week or fortnight; year in, year out. The person who works for a living has a much more tenuous position because they have no guarantees that their job will still be there next week or next month. 

They could lose their job tomorrow and be ineligible for social security payments for quite a few weeks. If that happens then the pressure is actually on to find another source of income (get a job) as quickly as possible. 

The pensioner doesn’t have to worry about that – they’re still going to get paid next week, even if it is only a very small amount. 

So why is it that those on a pension seem to manage their money better than those who are employed? It makes you wonder, doesn’t it? 

If you lost your job tomorrow, how long would it be before you had to line up for welfare payments?

 

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

An excerpt from the book – “Money tips from the Budget Bitch”  

 

Don’t be afraid to say no

Many of us grew up when money seemed to be in short supply. In actual fact, our parents only bought things that they had the ‘cash’ for. Not a bad idea, but it always seemed (at the time) as if they were saying “no”.

Obviously, at the time, we felt a bit dejected that we couldn’t have everything that we’d have liked but we were clothed, educated and fed. Generally, it was a happy time in our lives.

Naturally, we all want the best for our children and we don’t want to deny them anything, but it is OK to say No.

After all, we didn’t grow up to be such deprived people, did we?

 

And the positive action for this…

Do stand in front of the mirror every day and repeat “I’m sorry; we can’t afford it right now”.

Say it 10 times every day until you’re comfortable that you can say ‘no’ without feeling guilty.

It’s ok to have a giggle when you’re doing this.

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

As we know, a budget is a basic financial plan. It calculates your income and expenses and allows you to plan how your money will be spent. Of course, it will be different for every individual – that’s because we’re all different as are our needs and wants.

If you have enough income to cover all your needs as well as your wants – your budget will be vastly different to most peoples. Unfortunately for most of us – our personal store of money is not a bottomless pit. There’s always a limit to what we can spend. Once we have that planned, then we can enjoy our life without worrying too much about our financial future.

A budget doesn’t mean that you can’t do the things you want or have the things that you like. Making your money stretch is not as daunting as it seems. Sometimes we can do with a little help – so here are 7 of my basic budget tips

1. Don’t spend more than you earn – this is simply the most basic tip, yet most people tend to forget it!
2. Less = more …The easiest and simplest way to save money is to use less – of everything. This could mean things like – put less food on your plate; put a little less washing powder into the wash; put less into your shopping basket; drive less and walk more.
3. Choose one day a week as a “no buy day”, when you leave your money and credit/debit cards at home. This could make you tremble! But you only have to do it once, to discover how easy it is.
4. Use debit cards or cash. Paying by cash will make you think twice about breaking a $50 note.
5. Get an empty jar for loose coins. Every time you get home put any coins you may have in your pocket or purse into the jar. It won’t make you a millionaire but it all adds up over time.
6. Keep your insurance policies up to date and relevant. Check them each year at renewal time, to make sure they’re still affordable and offering value for money.
7. Shop around to see if perhaps you aren’t overpaying for your banking–there’s a lot of variations in fee structures from bank to bank.

I’m sure you can think of many ways to make your money go further – it’s not as difficult as you think and having a simple budget will put your finances back on top.

 

 

(c) Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

 

At the beginning of the year, which was only a few short weeks ago, I received some rather detailed information about the research and statistics that AMP had commissioned through a survey of 1,000 Australians.

• Over a third of Aussies (34 per cent) believe budgeting is too much effort
• Almost one in five Aussies (19 per cent) say budgeting takes too much time
• Even if we do start off the year with good intentions – sitting down and creating an initial budget – over a quarter (27 per cent) of us won’t end up sticking to it
• The research also showed that regularly checking our bank accounts (47 per cent), paper (28 per cent) and excel (20 per cent) were the main ways we keep track of our budgets.’

I’m sure this isn’t surprising to you, as you hear me banging on about this all the time. And I’m forever talking about the budgeting resolutions we make at New Year, only to have forgotten all about them by the time February comes.

The findings went on to say … Recent research by AMP, a leading financial services organisation, has found three quarters of Australians will be starting the year without a defined and specified budget, which will make sticking to our new financial goals tricky.

Michael Christofides, Director of Retail Solutions at AMP Bank, said the findings are worrying as budgeting is a critical part to achieving financial security.

“Knowing what you earn, owe and spend gives your greater control over your money and lets you quickly identify areas where you could be saving.

He also went on to say –

“The problem is that many people mistakenly think they are too busy to budget.”

According to AMP’s research, over a third of Aussies (34 per cent) believe budgeting is too much effort and almost one in five Aussies (19 per cent) say budgeting takes too much time.

Even if we do start off the year with good intentions – sitting down and creating an initial budget – over a quarter (27 per cent) of us won’t end up sticking to it.  

The research also showed that regularly checking our bank accounts (47 per cent), paper (28 per cent) and excel (22 per cent) were the main ways we keep track of our budgets.

Perhaps what I found most alarming was that 77% of the Aussies surveyed don’t have a budget. With all the demands that are placed on weekly incomes, I cannot understand how people can manage without some sort of plan or budget.

If you fit into that 77% category, then I urge you to change the way you’re managing your money and get organised with a budget. You can always contact me, if you need some assistance to get started.

The result of the research has prompted AMP to design a new banking product. You might find it helpful.

You can find it here 

(AMP have not asked nor paid me to promote their product, I’m merely offering the link in return for using their information)

 

 

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

Recently I popped into a supermarket to pick up a couple of small but necessary things. The total of my items came to $8.70. As I went to hand over the 10 dollar note from my wallet, I became aware of the weight in my purse from all the coins I had accumulated over the week. ‘Hang on a minute’ I said to the girl at the checkout. And I counted out the correct money for my purchases. 

Glancing up, I noticed the expression on the girls’ face. It was not a pretty sight. She was obviously not impressed with having to handle the coins and then count them into the till. I can understand that a little because apart from my purse, where else had they been?

I was a little puzzled by her reaction, and as I walked away I began to think about (in general) our attitudes towards coins and how little importance we place on the humble coin. 

For many of us it’s the first form of money that we identify with. As a child I remember going to church and my parents giving me a coin to put onto the collection plate as it was passed around.

It’s interesting to note that the tooth fairy usually brings coins. Even though inflation seems to have caught up with the practice, I’m sure there are not too many notes put into glasses of water as a replacement for a lost tooth. And I’ve not heard of any incidences where money was transferred via internet banking for tooth fairies, into the recipients’ account.

For children, coins are an important part of the first lessons about saving money. The banks used to give away money-boxes in order to promote savings. They don’t seem to do that nowadays which makes me wonder if perhaps they don’t place much emphasis on the humble coin either.

Actually, the last time I went into my bank with a years’ worth of coin savings, they wanted to charge me a ‘cash handling’ fee to count them, regardless of the fact that I had already counted and bagged the coins into bank-bags.

I can understand how coins could seem to be a nuisance at times. They’re not good in our pockets – weighing them down and tearing at the corners of the fabric. Have too many in a purse and it feels like a brick in your hand or bag.

So I wonder what most of us do with these coins. Do we keep them in a jar or a fancy money box? Or do we chuck them into the bottom of a drawer. I often find them lurking in the bottom of the washing machine and on the floor of my car.

Gathering them together is a great way to save because even though they tend to be treated as nuisance value – coins are still money and classed as legal tender. You can still pay for something by using coins. 

I know one couple who, every year, pay for a weekend getaway with 50 cent pieces. It takes a year to collect them and I know the hoteliers groan when they see them coming. However, they’ve never knocked back the money!

While it might be a pain in the butt for the store keeper who has to count them, the humble coin should certainly never be dismissed as an inconvenience. And, by the same token, we should never discount their value either.

It wasn’t that long ago that some of these coins lived in our wallets as paper notes.

 

 

 

 

Carmel McCartin – Budget Bitch

(The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

 

 

This media release immediately got my attention, and I thought I’d share it with you…

More than 40% of Australians don’t have enough money to pay for ‘emergency expenses’, new data has revealed.

According to the latest research from Mortgage Choice, 40.3% of Australians did not feel they had enough money put away for ‘rainy day’ expenses.

“To hear that 2 in every 5 Australians do not have the funds needed to cope with unforeseen incidents is quite alarming,” Mortgage Choice chief executive officer John Flavell said.

“The reality is, unexpected events can occur from time to time. And, these unforeseen events, like the loss of a job, a car accident, an illness, or a death in the family, can cause significant financial strain.

“Indeed, unforeseen events can throw off anyone’s budget, particularly for those who are living pay cheque to pay cheque.

“And while we cannot plan for such events, you can be prepared for them by creating a ‘rainy day’ account.”

Mr Flavell said there were three key strategies that all Australians could employ to safeguard themselves and their financial situation against unexpected events.

1. Set up an emergency fund

“In the first instance, Australians would be wise to set up an emergency fund that they can easily access for any unexpected costs,” Mr Flavell said.

“Not only will an emergency ‘savings fund’ give them greater ‘peace of mind’, but it will help reduce their reliance on credit cards and/or personal loans, which can be costly and create further financial debt.”

Mr Flavell said all savings should be kept separate from other everyday accounts. And, where possible, it is a good idea to choose an account with a high interest rate and low fees.

“As to the amount you should be saving, it is ultimately up to you and what you are comfortable with. You may want to start by saving just a small portion of your income and have this automated each pay cycle.”

2. Free up cash flow by paying off debts

“A lot of Australians have credit cards, personal loans, car loans and other debts that boast high interest rates,” Mr Flavell said.

“These debts eat into a person’s cash flow, which can effectively stop them from putting money away for rainy day expenses.

“Anyone who has various small debts with high interest rates should make it a priority to pay off these debts as fast as possible. The faster people pay off their smaller debts, the quicker they can free up some of their cash flow – cash that can then be injected into a savings account and used for those unexpected expenses that can crop up from time to time.”

3. Ensure you’re insured

Of course, while it is important to have emergency funds saved away for rainy day expenses, Mr Flavell said it was equally important for Australians to have adequate insurance.

“Mortgage Choice research has found that 52% of Australians consistently worry about what their family will do if something were to happen to them,” he said.

“When it comes to insurance, Australians are notoriously underinsured.

“While we are happy to insure our cars and even our phones, we often fail to ensure our greatest asset – our income.

“If Australians want to be truly prepared for unforeseen events, then they should take the time to insure themselves and their assets.

“Insurance will provide financial protection to Australians and their families should the unexpected happen. Better yet, insurance will also help minimise the stress and pressure associated with unforeseen events.”

Mr Flavell said any person concerned about their financial situation should speak to a financial adviser.

“A financial adviser will look at your current finances and personal situation, and draw up a practical plan for you to use in order to reach your goals,” he said.

 

There’s some great advice here and the key to ensuring that you are able to manage financially through an emergency is to have a budget. Having a budget also means that you will always have a Plan B if an emergency does arise.

 

 

©   Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions; you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)