19 May 2022
Super things come in small packages
Every year more people qualify for downsizing opportunities that can boost their super. But that's not the only things investors should be thinking about next financial year. Read more
19th January 2022 - Private Wealth
Is budgeting one of your new year’s resolutions? Well, we asked Elston Strategy Adviser, Dean Ireland for some tips on how to make a budget you can stick with right through 2022. As you can see from Dean’s answers, if you start with the right attitude, you’ve got a good chance of staying on the right track.
One of the main reasons people abandon their budgeting goals is they’re too ambitious. Instead of trying to knock it out of the park, aim for a solid performance week after week. When you set realistic goals, you can string together a series of small but significant achievements. Success after success makes you feel good and encourages you to keep going.
There was an old shampoo ad that told us ‘It won’t happen overnight, but it will happen.’ You should bring the same attitude to budgeting. Don’t expect miraculous results overnight. That’s only going to lead to disappointment.
There’s often a temptation to draw up a budget that’s calculated to the last cent. This might seem like the right thing to do, but you’ve also got to allow for the curve balls life is sure to throw your way. And if there is an unexpected blowout, give yourself a break. Be flexible enough in your thinking, so that you’re able to shrug off a bad month and move on.
Success starts with establishing a habit. Focus on the routine at the beginning, not so much the numbers. Once you’re comfortable with the discipline and it becomes second nature, then you can step things up. Gradually increasing your goals over time is definitely easier than charging ahead from the start.
Apply the most expensive bill period to the full year. Leave out the bonus you think you’re likely to get. Double your mortgage interest rate to see if you can afford the repayments. If you apply worst-case scenarios like these into your planning, your budget should be easier to achieve and therefore have a better chance of working.
Sometimes budgeting is too personal to allow for objective thinking. When this happens, our true spending habits are never really confronted. A good financial planner can help you to do just that. Ultimately, a planner can uncover your true spending and help you create discipline by holding you accountable.
You should review your budget every six months or when you reach a milestone. You could hit a savings target, get a pay increase or change your circumstances, any of which would lead to a review of your budget. Remember not to be hard on yourself as a budget should be kept flexible, but monitoring your progress is always important to ensure you remain in control of your cash flow.
Managing cash flow is the cornerstone of wealth creation. So, if you can get it working for you, that’s going to be good for your children too. Get them into the habit of budgeting when they land their first job. It doesn’t matter how they’re paid, money is money and learning how to use it early will only benefit them in the long run. Starting young will also allow them to understand tax and superannuation, as these two items will be an automatic deduction from your income.
Many people find it easier to stick to a budget created by a third party. Elston can help you create a realistic budget to help you reach your financial goals. If you’d like some professional help, please contact us on 1300 ELSTON and arrange to talk to one of our financial planning experts.
19 May 2022
Every year more people qualify for downsizing opportunities that can boost their super. But that's not the only things investors should be thinking about next financial year. Read more
14 April 2022
With the end of the financial year fast approaching, some of us are thinking about wrapping things up neatly in a bow and making sure we don’t get stuck with an unnecessarily large tax bill. But for others, the end of the financial year is a beginning. Read more
30 March 2022
With a federal election due within months, the 2022 Budget announced by Treasurer Frydenberg, was expected to be a friendly one. The announced measures have not disappointed, with benefits announced for many in the community and proposals outlined to aid with cost of living rises. Read more
15 March 2022
One minute we’re wishing each other a Merry Christmas. The next thing you know, it’s tax time. Read more
10 March 2022
Why would a company that’s issued shares to raise capital, later decide that they want to buy some of those shares back? Well, there are a few reasons why they might decide to take this action. Read more
7 March 2022
This February we launched a public ancillary fund called the Elston Giving Foundation. The foundation has been developed to make it easier for you to structure your giving in a simpler and tax effective way. Read more
3 March 2022
One of the things I love about working at Elston is the way we support great causes. That’s not a corporate thing. Read more
2 March 2022
The speed and magnitude of recent events have shocked us all. The floods have hit our neighbours, our friends, our workmates, our clients. And it’s hard to know how long the road to recovery may be. Read more