Being a good money manager helps you plan for the future, reduce stress and increase your options in life. At the core of good money

management is a good budget. And a good budget means you need to know what your expenses are and where your money goes. Complete this checklist to get your money under control.

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Step 1Write down your goals

Step 2Identify your spending ‘leaks’

Step 3Create a budget

Useful linksBudget Plannerwww.moneysmart.gov.au/tools-and-resources/calculators-and-tools/budget-plannerSaverPlus www.bsl.org.au/Saver-PlusAddsUp www.goodshepherdmicrofinance.org.au

TipUse a free mobile app like ASIC’s MoneySmart Track my Spend, to identify what you actually spend your money on and where you might be “leaking” money.

TipCheck you are receiving your entitlements using Centrelink’s online Payment Finder.

humanservices.gov.au

Did you know?If you are on a low income you could be eligible for free money management classes and a matched savings program through Saver Plus or AddsUp.

See the next page, for your full, step-by-step guide to completing the Challenge.

The Manage Your Money Challenge

Step 1. Write down your goals

What is it you want to achieve with your money?

Your answer could be as simple as “not running out of cash before each pay day” or “saving for a deposit to buy a house”. Or you might want to “create a rainy day fund” so you have cash in case of emergencies or unexpected expenses.

Whatever your goal, identifying it and considering a realistic time frame in which you would like to achieve it, will help you with your money decisions.

Step 2. Identify your spending leaks

Understanding where your money actually goes, will help you take greater control of your personal finances.

Often we find that money ‘leaks’; that is we’re not sure where it goes. The key to identifying spending ‘leaks’ is to separate ‘needs’ and ‘wants’. The things you ‘need’ to spend money on are usually not negotiable – for instance, rent and electricity - although you could look at how you might reduce that expense. Spending on things you ‘want’ is usually where you can find savings and impose some limits on yourself. For instance, you might decide to buy a magazine once a month, rather than once a week. Or you might decide to limit the number of coffees you buy each day.

First you need to know what you actually spend your money on.

Keeping a spending diary, in which you record every cent you spend each day is a great way to start. ASIC’s MoneySmart has a free app that helps you keep track of your expenses as you go. It is called TrackMySpend and it makes it easy to keep track of your spending.

Step 3. Create a budget

Once you know what you spend your money on by using TrackMy Spend or by keeping a spending diary, you can sit down and create a budget. You should also gather your other bills together, for instance the bills that come in quarterly or annually such as electricity bills, council rates or car registration and insurance.By adding up what you spend over a whole year and averaging that out according to your pay cycle (e.g. weekly, fortnightly, or monthly) you will be able to even out the expenses to ensure you can always pay bills when they are due.

If your Goal requires saving for a future date – whether that be for a deposit to buy a house, a holiday, or a rainy day fund - you can build this in to your budget. Remember to be realistic.

The free Budget Planner on ASIC’s MoneySmart website is a great tool that will do your budget calculations for you and step you through all the expenses you are likely to face. Another handy guide for planning your finances is the Davidson Institute’s booklet ‘A Better Footing’.

www.moneysmartweek.org.au

Your guide to completing the Challenge