Making big financial decisions and managing everyday finances can feel daunting. Getting a clear understanding on how much you really spend and on what, can help you stay in control and reach your financial goals.
To get a full picture of how much money comes in and out of your account, start by making a list of your current income. This should include any regular money you receive - your wage, pension, and any government assistance or income from investments.
Make a list of all your expenses. You may be surprised how unconscious, small or impulse buys add up! This process can sometimes be overwhelming so start with big bills like electricity and any loans. Then look at your everyday expenses. Try keeping track of everything you spend over a week or longer so that you can see exactly where your money is going. Alternatively, budgeting apps or online templates like this budget planner from MABS can make it easier to capture and track all your expenses.
Once you have a record of all your expenses, split them into buckets like home and utilities, groceries, public transport, and eating out. Look at your list and work out which of these expenses are essential and why. These important expenses are usually your priority buckets or payments – the payments you need to make regularly.
Does your income cover all your expenses? If not, then ask yourself - which of your non-essential expenses can you potentially pause or reduce? Keep going through the list until you find that you can better manage your money while also setting yourself up to move forward. Visit MABS Building up savings to give you some ideas on how to make a big difference to your budget with a few small changes.
A savings account that suits your needs can also help you save more. The Competition and Consumer Protection Commission website lets you compare savings account options and credit card options on the market.
If you have given your expenses a spring clean and are still having difficulty managing loan repayments, you can reach out to your lender to see what support options are available. There could be more than you expect. Get in touch early, understand your options now and make sure there are no unexpected surprises down the track, including any impact to your central credit register records.
If you are a Pepper customer and experiencing financial difficulty, please call us sooner rather than later. Contact us on 0818 818 181, or visit our Financial Difficulties section to understand the options that may be available to you.