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A budget can be very beneficial if you’re trying to achieve financial goals such as saving up for a holiday or a first home. When creating a budget, many believe that it can be very difficult cutting out expenses as they are all necessary.

Here are 5 tips that can help you stick to your budget and maybe reduce some spending.

Maintain don’t replace

Sometimes unexpected bills arise, although there are still ways to reduce the costs of these surprise expenses. Instead of replacing that oven or stove that broke down, why not have it repaired.

Repairing household products can be very cheap compared to replacing them with a brand new one.

Review Insurances

To save in your budget, it can be beneficial to review your current insurance policies. You could be spending too much on you insurances policy or over cover, which could be increasing your expenses.

It is best to go over your insurance plan with your financial adviser to find any hidden fees and make sure you have the correct amount of coverage.

Memberships

Simply canceling unused memberships could save you hundreds of dollars a year. Gym memberships are a common example of extra expenses not being used. If you only go to the gym once a month, it does not make sense to pay weekly fees of $20.

Many gyms have an option of paying for a one-off visit which could be cheaper than paying for a membership that isn’t being used enough to be valuable.

Review Superannuation

There are superannuation fees that you might not be aware of. Many people just pick the superannuation the employer offers, which could mean an overpriced fund.

It is best to sit down with your financial adviser and review what superannuation fund could best suit you.This could reduce unnecessary expenses.

Pay bills on time or earlier

Paying bills on time or earlier can have a few benefits. One of those benefits is giving you a good credit history, which is necessary when applying for loans.

Also, many electricity companies, banks, and other companies have created incentives to pay earlier such as reduced interest fees or a percentage off the bill.

Happy to help.

We hope these tips helped you create a good budget.
For more information on effective budgeting contact us on (07) 3806 4484 or send an email to admin@hannansfinance.com.au.

Categories: Business

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