Some time ago I was talking to a lady in her mid-forties, who told me that they “don’t need a budget”. Naturally, my curiosity was aroused. Not five minutes before that statement she was complaining that she had to work, and she hated it.

“So why don’t you need a budget?” I asked. Her reply was simple – they “don’t have a credit card and they don’t owe any money”.

My question about how much money they have saved in a bank account was met with a blank stare and an answer of ‘Nil savings’.  Their future? – Well, they have nothing apart from the employer funded superannuation which now amounts to about $35,000.

How are they planning to spend their retirement? What activities would they like to enjoy? Have they even thought about this? You see, at the moment the old age pension is a little more than $400 per week. Now I don’t know about you, but that will barely cover my household expenses.

So while this lady has worked hard to make sure she has all her debts paid out, she hasn’t given much thought to what lies ahead in the future. She readily admitted that they’ve frittered a lot of money away each week, since they paid off the mortgage. But then she also realized that if the fridge packs it in tomorrow, they don’t even have the price of a new one in their bank account. That would mean going back into debt again.

Even if they just saved half of their old mortgage payment each week, they’d be in a much better situation when they retire and that could mean the difference between eating out in a restaurant and eating out on the back lawn.

Having a workable budget will  ensure they can remain financially stress-free now and into the future.

©   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)

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