Instead of budgeting, more and more its not uncommon for households to become reliant on credit to supplement their incomes. Relying on credit instead of budgeting will lead to stress and a debt problem that can be hard to deal with. Keeping track of your spending and making the decision to start and then maintain a simple budget is a good way of taking control of your finances.

Although many people contribute to superannuation, or are beneficiaries of compulsory superannuation, the contributions typically fall short of ensuring retirees will be able to maintain their current standard of living. Budgeting is a simple way of helping people to smooth-out their cash flow during their “financial life-cycle”.

There’s a joke that goes something like this – “If at first you don’t succeed file for bankruptcy and transfer all your assets into your spouses name.” Brought a smile to my face but lets face it bankruptcy is no smiling matter. Many of us live perilously close to bankruptcy but have become conditioned to living beyond our means and often borrow to make up the difference.