Are you too scared to Budget?
Three budgeting pitfalls!
Do you cringe when you hear the word “budget”? Most of us Aussies do! In fact, nearly 67% of us don’t have a household budget, and nearly half say the reason they don’t budget is because they are too scared of what they will find out! At Fair Go Finance our goal is to help our customers create a better future, so let’s tackle this “budgeting” fear head on and find out what the three worst things are that you could find!
1. You spend more than you earn
Doing a budget could show that you actually spend more money than you earn. But how can that be? See if any of these situations sound familiar:
- Your credit card keeps increasing and you struggle to make minimum payments
- You keep needing to borrow money
- You juggle to pay your debts on time
Eventually you could hit a point where your debts will overtake your life. So what can you do?
It’s never too late. Because you have finally done a budget, you can now look at all your expenses and determine ways of cutting back and clearing your debts. Your new budget can get you back on track and save you from getting into more debt. The government’s free website http://www.moneysmart.gov.au can help you get started.
2. You have more debt than you realised
Acknowledging the total amount of debt you have can be hard. Many of us want to bury our heads in the sand and just hope it will magically disappear. It won’t.
A budget will give you a clear picture of your total debt allowing you to start work on getting it repaid. Remind yourself the enemy is not the budget, it’s the debt – so it is now time to focus on getting rid of it.
3. You can't see a way out
If your budget shows a bleak picture, then you know something must change quickly. You can either confront it, or face a possible bankruptcy situation.
THERE IS STILL HOPE!
There are a number of resources still available to help you. The key is to start the process. There are free financial counselling services that can help people in difficult financial situations, such as http://www.financialcounsellors.org/.
Remember, these are the worst things you can possibly find out from doing your budget and for each of them there are solutions. Being frightened of something never makes it go away, so why not take control today, we promise it will be one of the best things you have ever done!