Late last year, the ABS released some statistics on the movement of Average Weekly Earnings. See them here

It revealed, not unsurprisingly, that average weekly earnings grew by only 1.6% for the 12 months to November 2016. This compares to 2% when the last report was released in March 2016.

It’s a sobering thought that wages growth has effectively been stifled. While those whose earnings are in the lower spectrum, living is still a bit tough. But hopefully this also means that inflation is under control and spiralling prices will not be seen again for some time. We can but hope on this front.

When looking at this from a budgeting perspective, simplistically we can approach it from two angles.

If wages are not growing for us then we can either look at increasing our household income, through seeking additional work; or by a party that is not currently working seeking some active employment. On the other hand if our income is not increasing, we then need to look at reducing or eliminating some of our costs.

A good idea is to look at all your utilities and see where cost reductions are offered either from your own supplier or a competitor, provided you change the terms of your contract. It could just mean signing up for a fixed term with one particular supplier or agreeing to pay the bill on or before the due date. Both of these can provide significant percentage reductions in your overall bill that equates to hard dollar savings over time.

The message no matter what your circumstances,  is that it is never a bad time to review your budget. A simple exercise every 6 months will tell you straight away if you’re on track or not.

If we can assist you with your budget review, or even setting up your budget (if you don’t already have one in place), please contact us.

©   Mike Betts – Budget Bloke

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)