Getting started with a budget

There are two main approaches to starting a budget:

• The traditional budget
• The cash-only or forced-savings budget

A balanced approach to reaching your financial goals can involve a combination of both approaches.

If you are new to budgeting or you are having trouble controlling your spending, you may like to start by reading our article on breaking spending habits. Also, be sure to have a good look around our section on saving money, to help you cut your spending without cutting your standard of living.

Traditional budget

The traditional budget is suitable for people with a reasonable amount of discipline. Following this budget requires that you keep track of you income and spending, set goals, and stick to a plan. You will find a spreadsheet-based tool to help with your budget on this page.

More resources for those who want to try the traditional approach to budgeting coming soon.

Cash-only budget

Lets face it, most of us struggle to follow a traditional budget. The cash-only budget is suitable for people who have tried and failed to follow a traditional budget, or those who want to take back control of their spending.

The cash only budgets main features are:

• Setting up automatic payments for important bills such as power, water, and rent
• Sorting out how much you need for other weekly expenses
• Withdrawing the required amount plus 10% extra for "sanity money" at the beginning of each week
• No use of eftpos or credit cards
• Setting up an automatic payment to a savings account

If your spending has got you into debt, this budget will help you get debt free and stay that way. Using cash makes you much more aware of your spending. When you have run out of cash for the week that's it. Unless it is a genuine emergency, don't keep dipping into your account or using a credit card.

More information and resources for those using the cash-only budget coming soon.