This is a guest post by Rob Kotevski. Rob runs a blog called Health Insurance Australia.
Have you had success with changes made to your budget? Are you now living fairly comfortably, in terms of certain spending categories and items? Follow along for minor points to optimize the health and status of your budget.
From Yesterday to Today
Much of making progress is being able to see it, and thus evaluate and measure it. Before you make the next step, and before you turn the corner with your budget, you must take the time to observe these dynamics.
Take a step back and look at how you have done recently (the last few months to a year, perhaps):
- Compare expected to actual spending. How have you been doing? In particular, how did you do with problem (food and entertainment, commonly) areas? Judge whether any lack of progress is acceptable/reasonable or in need of improvement.
- How are your savings? Do you have enough funds for emergency expenses, short and long-term savings goals, and others?
- How are your investments? From retirement and children’s education funds to term deposits, evaluate how these are going.
Other specific items will be relevant to your needs.
“Little Things†– Big Differences
No, you shouldn’t sweat the small stuff. However, if you are doing well with your budget and want to make sure everything is optimal, you could clean up a few items by investigating these things.
A perfect example is with that of insurance. After all, many consumers often “set and forget†about particular policies, getting comfortable with their insurers. However, it can be very rewarding to spend some time improving in such an area.
You could consider, for instance, comparing homeowners insurance policies. By taking a look at your policy and seeing if any changes need to be made, you can see if your current one can be improved. At the same time, you can compare premiums from other companies to see if something better is out there. Perhaps you’ll find an insurer who can offer you savings on a bundling discount.
Don’t stop there. Look at other ways you can save money on certain items, as well as save your money. It can help you reach that next step.
The Next Step
What is the next step going to be for your budget? Once you evaluate your progress and spend some time on smaller items, it’s time to decide what that corner will be.
Everyone is different. You might want to start a business to supplement retirement income, save for a new home or car, invest your money, or find ways to devote your time to a charity that you love. Whether it’s purely financial or a part of something bigger, you’ll need to make some decisions – what they are and how you’ll meet them.
Turning the corner with your budget can be taken in many ways. Whether you need to clean up a few items to increase your budget’s efficiency or meet a huge goal, some steps can help you along the way. Take some time to see how you’ve been doing, what you can do, and what you will do to turn that corner.