This post is from Credit Mediation. They posted this last year, but I found this very helpful for new budgeting of financial year 2020!
Step1 – Review your Budget: If you’re looking for ways to cut spending because you want to save money or get out of debt, budget planning is a good place to start. Look at all of your expenses from last year. Were there any surprises? By seeing the big picture, you can create a plan that matches your life. You can download a budget calculator and a budget spreadsheet to assist you in your financial planning.
Step 2 – Review Subscriptions: In today’s online subscription economy, you may be wasting money paying for services you rarely use. For example, software for old computers, Netflix you never watch, etc. If you’re searching for an effortless way to save a little extra each month, evaluate which on-demand services you use all the time versus those you only use occasionally. Additionally, many subscriptions will quietly resubscribe a further 12 months and deduct your credit card, watch out for this.
Step 3 – Check your Credit Report: The beginning of the year is a great time to check your credit report and make sure your score is high. There are several factors that will drag down your credit score, such as too many credit inquiries and apply for finance with payday lender agencies. One day, you may need to access finance from a bank and you’ll need a nice high score, say 750+, to access funds.
Step 4 – Evaluate Insurances: Don’t lazily sit on your insurances year in year out, you’ll find the premiums will creep up over time. Recently our home and contents insurance went up 20%. Simply spending an hour making phone calls to assess competitors products convinced our insurer to not only drop the 20% increase but provide a further competitive price on our insurance, 4 phone calls saved us $360.00 for one year.
Step 5 – Evaluate Debts: You may need help with debt. There’s good debt, such as mortgages and car payments; however, sometimes other less healthy debts get on the personal balance sheet. Whether your debt has increased due to a medical procedure, unexpected home or car repair, or credit card bills, create a plan for paying these debts promptly. And if you want to avoid getting stuck with high-interest payments for years to come, try to pay more than your minimum payments each month.
And if you would like to consolidate your debt, find a better budgeting loan or even business loan to pay your ATO debt, Trusted Financial Partners can help as well!