Sort out your budget for the new year

A lot of us are feeling the pinch a little after the expensive Christmas and New Year season, and our minds have turned to our personal finances. 

Creating a workable budget doesn’t have to be complicated. A few simple strategies can help you make the most of your money this year.

Start by listing all sources of income, such as the Age Pension, superannuation payments, and any investments. Then, track your regular expenses such as utilities, groceries, insurance, and medical costs. 

Understanding where your money goes is the first step to managing it effectively. You can do this in a notebook or using a free budgeting app to keep things organised.

Focus on essential expenses first. Once these are covered, you can allocate funds for discretionary spending on things such as hobbies, dining out, or travel. This approach ensures your priorities are met before spending on extras. 

Rather than thinking in fortnightly or monthly terms, break your budget down into weekly amounts. This makes it easier to manage day-to-day spending and avoid overspending. 

Unexpected expenses, such as car repairs or unexpected medical bills, can throw your budget off track. Aim to set aside a small amount regularly until you have a cushion of at least $500 to $1,000.