Managing my money.

Managing money day to day can be cumbersome and it is sometimes hard to see the big picture.  Understanding more about your inflows and outflows is important for getting your money on track, particularly when wanting to save for a goal or pay off debts.

 

Tracking your expenses

  • We tested a number of apps / websites to assist with this step and the option that best suited us was the Pocketbook App as it connects to a credit card and automatically categorises and tracks spending

    • This is for you if - most of your spending comes from a single credit card and monthly spend is relatively constant

    • This is not for you if - you use a variety of means (e.g. cash, different cards etc) to spend, I'd consider a more manual approach.  Other, more 'manual' tools include MoneySmart's TrackMySPEND or Daily Budget apps

 

Understanding your income

  • It is important to understand your "after tax income" (i.e. your 'inflow')

  • For this step, I would recommend to use the ATO Tax Calculator App which allows you to input your income (over a chosen frequency), applies your chosen deductions and provides you with your income less tax 

  • Another option is MoneySmart's income tax calculator which takes into account other (beyond your salary) income you may be earning, but does not tailor deductions (hence may be less accurate for income than the ATO Tax Calculator)

 

Creating a budget based on your inflows and outflows - or income and expenses

  • With the information gained above, a budget can now be created 

  • A special call out to the budget planner which can be exported into Excel (which I would recommend) from MoneySmart