Do you know how much you spent on groceries or takeaway coffee last month? If you're scratching your head, you're not alone. Many of us find tracking expenses overwhelming, but it doesn't have to be. I have three simple tips to help you to get your finances on track.
Ideally when we set goals like this, we want them to be ones that will have a positive influence on our own financial position. This means when we hit our goal, not only have we made an achievement, but we are in a better place for it.
1.Set Your Financial Goals
First of all, we need a goal. A clear goal for what we need or want gives us something to focus on and also something to sacrifice for when that 'buy it' voice speaks up in the back of your head. Goals can range from upgrading the family car and purchasing your first home to saving a month's worth of expenses to stop living paycheck to paycheck.
Ideally when we set goals like this, we want them to be ones that will have a positive influence on our own financial position. This means when we hit our goal, not only have we made an achievement, but we are in a better place for it.
2.Choose a Budgeting Platform
My preference for budgeting is through digital budgeting platforms that allow us to set goals, track our savings, and see how much we've spent in specific areas. Here are some apps worth considering:
Pocketsmith: A New Zealand-owned platform that allows you to forecast cash flow, set category goals, and use detailed reporting to understand more about how you are using your money. Account transactions need to be uploaded manually if using the free version, otherwise, it costs $9.95 p/month and then your transactions are automatically uploaded into the app.
YNAB (You Need A Budget): Available as a desktop and mobile app, this platform uses a 'money envelope' system where you allocate your money into 'envelopes' and look to virtually fill these envelopes each month or payday. The focus is on having full envelopes each month and to stop living paycheck to paycheck. Account transactions need to be uploaded manually with this software. Costs approx. $4 p/week in NZ.
The great thing about both of the above budgeting apps is that there are tons of explainer videos on YouTube that help you get set up and fully understand the way they work.
For those who are BNZ or Westpac customers, both banks have apps that provide some form of account tracking and categorisation which are handy tools, particularly because they are free to use. The key difference here however is the inability to set specific saving or debt repayment goals within the app making them less intuitive and customisable.
3. Monitor your spending
Whatever you use, make sure it's something you're willing to interact with regularly. Budgets need to be revisited often to help you achieve your financial goals.
Budgeting doesn't have to be a chore; it's a ticket to financial freedom. Whether you're using Pocketsmith, YNAB, or your bank's app, the key is to start now. Set clear goals, pick your tools, and make checking in on your finances a habit. Your future self will thank you.
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