Budgeting as a Tool for Planning and Control

A budget is one of your best tools for reaching your goals – whatever your age or stage in life. It’s a plan of what money you expect to receive and how you expect to spend it. * Who should have a budget? * How to make a budget * Use the money planner * Things you need * Getting help * Tracking your spending * Making the most of your income
Who should have a budget?
Tip: A tight budget is harder to stick to. Be realistic.
Everyone can benefit from a budget. It’s not just for people who are having trouble making ends meet.
If you’re spending less than you earn, use your budget to work out how much you can put aside each pay to improve your financial position. We call this ‘paying yourself first’.
If you’re spending more than you earn, use your budget to see where your money is going. Then see if there are any ways you can cut your spending or increase your income.
Rick and Heather Mawby
The Mawby family makes sure their money goes a long way.
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How to make a budget
Add up how much money is coming into your household (your income), and how much is going out (your spending), then work out the difference.
The result is either money left over (a surplus) or not enough money to cover your spending (a deficit). Aim for a surplus so you have some money to save for your goals or pay off debt faster.
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Use the money planner
Making a budget is easy with our money planner.
Once you’ve set your budget you can save it in My Sorted to review later. You can save more than one budget and even share it with friends and family.
The NZ Federation of Family Budgeting Services also has a free budget worksheet you can download.
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Things you need
Your budget needs to be accurate or it won’t work. Give yourself time to get all the information you’ll need, including: * A record of your day-to-day spending. Keep receipts from your shopping, and gather up bank statements and bills from the last