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For someone who knows a thing or two about money,I admit I started budgeting very late in life and,even then,I’d only call it “budgeting” in the loosest sense of the word. More of a free-form,vibes-based way of allocating my finances every month,certainly not on-par with the rigorous tracking systems many other people use.
Many people shy away from tracking their spending,even though knowing where your money goes is vital to budgeting.Aresna Villanueva
Regardless,the difference in my quality of life between before I started tracking my spending to now is like night and day. Turns out it’s pretty good knowing where your money goes each week and not being sucker-punched by unexpected direct debits. Who knew?
What’s the problem?
Despite this,it’s still something many of us shy away from,with recent research from comparison house Finder showing one in eight of us not tracking our spending,with a total of 2.6 million Australians having no idea where their money is going.
Thankfully,the rest of us say we do track our spending,at least sometimes,but if you’re part of that 2.6 million – or if you’re just someone who thinks your budgeting skills could be improved – then it might be time to get started.
What you can do about it
There’s been enough written on the importance of budgeting in personal finance to stretch from here to the moon and back. This can be a bit daunting,especially if you don’t know where to start,so here are some tips to get you on the right track.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.