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”.

At one time or another we have all known someone who has not been game enough to open their credit card statement for fear of knowing the state of their financial position. I say to people in denial that – “avoiding the situation only makes it worse so the next time you receive your credit card statement make sure you don’t ignore it, so you can start taking control of your financial future.”

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.