The document discusses budgeting and financial planning. It provides examples of individuals' budgets and expenses, highlighting how budgeting can help people understand where their money goes and identify ways to reduce spending or increase savings. The document encourages readers to create a budget for themselves in order to take control of their finances and work towards savings goals.
2. Disclaimer
This document contains general information only. It does not
contain any recommendations, statements of opinion or advice.
The information provides a general introduction to Budgets and
managing your finances.
You should obtain independent advice which is suitable to your
objectives, financial situation and needs.
- Clarity Accounting and Business Services
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3. To believe, one must have a
firm conviction as to the reality
or goodness of something.
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4. To believe and to have confidence,
work hand in hand
and
have a direct correlation to
achieving something great.
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5. Which is faster …
the FOX
OR
The RABBIT?
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6. The Fox is running for his
dinner …
The Rabbit is running for his
life ...
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7. What does it
take to really
believe that
you can
achieve your
financial
goals?
Success
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8. Establish a savings habit ….
Understand and practice….
• Plan
• Budget
• And
• Save as much regularly as you can.
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9. What is Planning
and Budgeting?
Isn’t that something
Only large companies do?
Why do I need it?
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12. Budget Planner….
Know where your money goes…either on a
weekly, fortnightly or monthly basis.
Write down all your income and all our
expenses.
Make sure that your numbers are for the
same period.
Consider all expenses even if they are small.
We will see
Mary MacDonald’s scenario.
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13. 26/09/2013 13Clarity Accounting and Business Services
Mary MacDonald
Mary MacDonald (30 years of age) who lives in her own
house in Kellyville. She is a Director of a ASX listed
company.
Mary is single and has completed her University
education.
Mary had no other debts and her last month’s budget
gave her savings of $ 485. 00
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Mary MacDonald
Mary has recently upgraded her furniture which puts her
on additional monthly payments of $ 1,000 and credit
card payment $650. Now her total monthly expenses are
more than her income by $765.00
Compare Mary’s monthly budget to see her financial
position.
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Mary MacDonald's Monthly Budget
Income Type of Income
Amount received
each period
Work out your
regularIncome
Salaryor wage (after tax)
Pension or Government allowance $ 6,600.00
Child support or other payments $ -
Regular interest from savings $ 50.00
Regular income from investments $ 1,200.00
(such as rent from an investment property, distributions
from a managed fund, or dividends from shares)
Other misc income
Total income $ 7,850.00
Household Expenses
Amount received
each period Education Expenses
Amount received
each period
Work out your
regularexpenses.
School fees $ -
Rent $ - University /TAFE (own) $ 300.00
Repairs $ 800.00 Tuition
Gas $ 60.00 Books uniforms
Electricity $ 250.00 Camps/excursions
Water $ 120.00
Points to
remember:
Telephone/mobile $ 450.00 Sub Total (b) $ 300.00
Council Rates $ 260.00 Debt Repayments
Use the same time frame
that you chose for your
income.
Body corporate fees $ - Mortgage $ 2,800.00
Internet $ 75.00 Car loan $ 600.00
Cable/TV $ 50.00 HECS or HELP payments $ -
Furniture $ - Credit Cards $ 200.00
Appliances Personal loans $ -
Groceries $ 1,000.00 Store cards $ -
Gardening $ 400.00 Lay-bys $ -
Sub total (a) $ 3,465.00 Sub Total ( C) $ 3,600.00
Next, add up the subtotals
to get your total expenses. Total Expenses i.e. Household expenses Education + Debt repayments (a)+(b)+ ( c) $ 7,365.00
Total Income Less Total Expenses = surplus/Deficit $ 485.00
Mary MacDonald's Monthly Budget
Income Type of Income
Amount received
each period
Work out your
regularIncome
Salaryor wage (after tax)
Pension or Government allowance $ 6,600.00
Child support or other payments $ -
Regular interest from savings $ 50.00
Regular income from investments $ 1,200.00
(such as rent from an investment property, distributions
from a managed fund, or dividends from shares)
Other misc income
Total income $ 7,850.00
Household Expenses
Amount received
each period Education Expenses
Amount received
each period
Work out your
regularexpenses.
School fees $ -
Rent $ - University /TAFE (own) $ 300.00
Repairs $ 800.00 Tuition
Gas $ 60.00 Books uniforms
Electricity $ 250.00 Camps/excursions
Water $ 120.00
Points to
remember:
Telephone/mobile $ 250.00 Sub Total (b) $ 300.00
Council Rates $ 260.00 Debt Repayments
Use the same time frame that
you chose for your income.
Body corporate fees $ - Mortgage $ 2,800.00
Internet $ 75.00 Car loan $ 600.00
Cable/TV $ 50.00 HECS or HELP payments $ -
Furniture $ 1,000.00 Credit Cards $ 650.00
Appliances Personal loans $ -
Groceries $ 1,000.00 Store cards $ -
Gardening $ 400.00 Lay-bys $ -
Sub total (a) $ 4,265.00 Sub Total ( C) $ 4,050.00
Next, add up the subtotals
to get your total expenses. Total Expenses i.e. Household expenses Education + Debt repayments (a)+(b)+ ( c) $ 8,615.00
Total Income Less Total Expenses = surplus/Deficit -$ 765.00
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Mary MacDonald
Mary had no other debts and her last month’s budget
gave her savings of $ 485. 00
Mary has recently upgraded her furniture which sets her
budget to deficit. Now her total monthly expenses are
more than her income by $765.00
What if Mary’s Wedding is coming up ?
Will her income increase in the same proportion of her
expenses?
What if Mary is expecting a child?
17. Let’s see how we are managing on monthly
basis?
Please fill out the Budget Planner which is given
to you. See where each of us stand.
Activity time: 5 minutes.
How about a group activity?
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22. If you are spending all of your Income ( or even
more), your budget can show you where you need to
change your spending habits.
See which expenses are essentials and which one are
extras.
It is your budget, so you decide what you think is
essential and what you might be able to spend less on.
If you have surplus money, think about how that
money could be used. Getting debt under control is
important, and you might choose to increase your loan
or credit card repayments. Or
you could organise a regular deduction into a separate
savings or investment account. Whatever you
do, make sure that you put any extra money to good
use.
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23. It begins with you and your
ability to …
Put yourself in charge to have a plan for your
money and stick to it.
Prepare a budget for yourself and keep it up to
date.
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24. Reward yourself for new skills!
Improve Self Discipline
Improve your finances
Plan for your dream holidays
Know every single benefit there is to know about
your finances
Plan for your future
Have you learnt new skill? Will you do budget?
If your answer is YES,
There are many reasons why should get excited..
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25. Take a hard look at your loans and credit cards and see what scope there
may be to consolidate them or adjust some of your spending habits.
Look for opportunities to make your money work harder by
investing, and check if you’re contributing enough to your
superannuation.
Think about strategies for protecting your money, such as making sure
that you have the right insurance.
Shop around and get information and advice if you’re not sure about
managing your money or if you need help.
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26. A few simple things done
regularly can make a real
difference…
• Expect to make a positive change.
• Save rather than spend
• Treat disappointments as stepping stones
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28. Revisit your plan and budget….
Make necessary changes to save more…..
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29. Spending habits are difficult to
change.
People often become confused…
and simply switch off their
interest.
Change?
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30. People have many different priorities,
but one common interest - Savings.
A budget helps to achieve that goal.
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31. You may have to wait a
week, a month,
sometimes a year or more
but…
You FINALLY get your
financial freedom
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32. Anticipate that things will go wrong.
Mentally be ready to accept total responsibility for
your own actions.
Set clear goals and deadlines for reaching
objectives.
Seize every available opportunity, Create ones
when none exists.
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33. Analyze what went wrong
Develop a “Plan B”
Stay in touch
Know your earnings limit.
Always make efficient use of your earnings.
Develop excellent savings habit.
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35. ATO Guide – Understanding your money
More Information Visit www.ato.gov.au
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Thank you for your valuable time and your feedback.