Budgeting Tips

How you manage your cash flow will be the biggest influence in achieving your lifestyle and financial goals.


Let me repeat that:  Without a budget you are unlikely to achieve the things you want from life.


You probably know you need to sit down and go over your monthly expenditure but you never get around to it.  Meanwhile, you’re not sure exactly where your money’s going each month.  If you take a hands-off approach when it comes to budgeting, your finances and lifestyle are likely to be negatively impacted.


If you’re a procrastinator or just plain lazy, here are a few easy tips for taking charge of your cash:


1. Track your Spending
Whether you’re trying to pay down debt, save for a dream holiday or house, or boost your savings, having a budget is a vital part of the plan.


Making your budget work is all about knowing exactly what you’ve got coming in and going out each month.  If you’re not living on a budget then you won’t have a clear idea of what’s going on.  Figuring out where your hard-earned dollars are going is the first thing you need to tackle before you attempt a budget.


If you don’t want the hassle of tracking your spending, JBS can do that for you.


2. Keep it Simple
Warren Buffet once said ‘Simplicity is the greatest form of sophistication’.  Whilst he was referring to investing, the same principal can apply to budgeting.


Making a budget isn’t rocket science.  You firstly need to know where your money is coming from and where it is going.  If you’ve got money left over at the end of the month then you’re already off to a good start.  If not, then you’ll need to do some additional fine tuning to look for things you can cut back on.


Once you’ve got a sense of what your budget should look like you’ll need to set up a system for allocating your money.


This is where JBS steps in.  We work with you to create a budget that is simplistic in nature, however aligned to your future goals and objectives.  We ensure you have enough money to spend on yourself today so you’re happy, but there is money left over each month to work towards your future goals.


3.  Put your Budget on Auto-Pilot
The majority of attempts to budget fail because meaningful and permanent change comes from a change in behaviour not simply reporting spending patterns.  We know this, and we believe effective cash flow management contains 2 key elements:


1. A redesigned banking structure that changes a person’s behaviour – This may include setting up multiple bank accounts and arranging automatic direct debits that puts you in a better position to achieve your short and longer terms goals.  Essentially you put your savings on autopilot.


2. Regular reporting to track your progress and to make adjustments along the way.  Each month JBS provides a report outlining your monthly spending, what went well, what needs improving, and how you are tracking towards your goal.


This report helps ensure you are accountable to the plan we set you now and in the future, maximising your probability of achieving your goals.  All you need to do is follow the plan we set you, the rest is on autopilot.


4.  Start Small
Learning to stick to a budget isn’t something that happens overnight.  Our JBS Cash Coach program however can help you set a budget which is aligned to your goals, and keep you accountable to your plan.


For you, all it takes is 5 – 10 minutes each week.


Sitting down with JBS to prepare a budget may seem like a hassle but it’s a smart investment that has long-term benefits.


Taking the first step is usually the hardest part but the sooner you stop dragging your feet, the bigger the payoff will be.


– Glenn Malkiewicz-