Tag: budget

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2024-25 Federal Budget Update

Labor’s third Budget, unveiled on May 14, prioritised alleviating the cost of living for Australians. Treasurer Jim Chalmers emphasised its responsibility in balancing household support with economic stability. Key highlights include:

Tax Cuts:

  • Stage 3 tax cuts, effective 1 July 2024, will provide all tax payers with tax savings.
  • The savings range from $354 for those earning $30,000 to $4,529 for incomes exceeding $190,000.
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How to create a budget

If you are trying to manage your cashflow position and looking toward building and maintaining wealth, creating a budget is essential.

By sitting down and completing a budget, you create a snapshot overview of your personal financial position. In doing so, you give yourself the opportunity to gain a better understanding of the movement of your money – inflows and outflows. This information can help you work out how to achieve your financial goals and objectives, such as paying down debt or investing for the future.

The 50 / 30 / 20 budgeting rule

There are many ways to manage your budget. One popular tool is the 50 / 30 / 20 budgeting rule.

Essentially, this budgeting rule provides a rough guide as to how your money should be allocated towards your needs, wants and savings. For example:

  • 50% NEEDS: 50% is allocated towards needs, such as rent or minimum home loan repayments, transportation, groceries, minimum credit card and car/personal loan repayments, insurances, education, utilities, private health insurance, phone and internet, etc.
  • 30% WANTS: 30% is allocated towards wants, such as daily coffee, eating out, shopping, entertainment (e.g. subscription services, such as Netflix), hobbies, holidays, etc.
  • 20% SAVINGS: 20% is allocated towards savings, such as emergency funds, savings accounts (e.g. saving for a new car or a housing deposit), additional debt repayments, as well as investments inside and/or outside of superannuation.

Do you know what percentage you are currently allocating towards your needs, wants and savings?

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