500
Weekly
Fortnightly
Monthly

Loans from $2100 and upwards require a car, motorbike, boat or caravan to be provided as security. If you cannot provide security, please apply for $2000 or less.

The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.


How To Budget Successfully in 2022


March 17, 2022

Wondering how to make a budget, or how to budget better than you currently are? Here at Good People Bad Credit, helping Aussies with their finances is our specialty. 

Starting off the new year with a well-thought-out budget is the first step to financial freedom, and can set you up for success for years to come. To make things easier, we’ve racked our brains for the best tips and tricks to turn you into a budgeting pro.

Why should you budget?

Budgeting can be an excellent tool for keeping track of your finances. Even the most simple budget helps you to understand where your money is going, how to spend more mindfully, and how to best achieve your financial goals by saving money.

Some people like budgeting the old-fashioned way with pen and paper, while others prefer using digital spreadsheets and online tools. Whichever way you choose to create a budget, there are a number of ways to ensure it is foolproof and realistic for your financial situation.

How to budget

Whether you’re starting your first job or opening your own business, the same basic rules for budgeting will apply. 

1. Gather important info 

Before getting cracking on your budget, you need to ensure all the relevant information is readily available. This includes recent bank statements, payslips, household bills, investment accounts, and any other sources of income or expenses that you’ll need to factor in.

Tip: It can be handy to print these documents out and have highlighters ready to colour-code. 

2. Start calculating 

Start calculating your income and expenses based on these documents. You can use different colours to highlight various types of expenses and another for sources of income. 

Income

Firstly, make a list of every income source you have whether it’s work, side hustles, investments, etc. If you receive regular payslips from an employer, look towards the ‘net income’ amount when taking note of your earnings, as this stands for the amount you bring in after taxes are deducted.

Tip: If you have a variable income source (i.e. a side hustle business or weekend job), base your income on the lowest-performing month over the last 12 months. This will ensure you don’t overestimate your earnings for this source of income.

Expenses

Expenses refer to your ‘needs’ – essential costs that you’re required to pay in order to live comfortably. Within these categories, you’ll have both fixed and variable expenses:

Fixed expenses Variable expenses
Fixed expenses are essential costs you have to pay that don’t fluctuate in price. They may be charged on a fortnightly, monthly, or quarterly basis:

  • Rental or mortgage payments;
  • Car loan and personal finance repayments;
  • Car registration;
  • Regular child care costs;
  • Monthly subscription fees;
  • Insurance payments.
 

Variable expenses change from month-to-month, meaning you will pay a different amount for each bill:

  • Utility bills, if calculated based on usage;
  • Grocery costs;
  • Entertainment costs;
  • Charity and gift costs;
  • Petrol costs;
  • Credit card costs, if you pay off your statement before its due date;
  • Regular household expenses.

Aside from these, you will also have unexpected costs that will pop up from time to time. While infrequent, it’s as important to budget for these as it is for fixed and variable expenses:

  • Unexpected car maintenance and repair costs;
  • Emergency medical bills;
  • Unforeseen veterinary costs;
  • Household emergencies (e.g. blocked plumbing).

Tip: Check back over bills and bank statements from the past 12 months to ensure you record all expenses correctly. If your utility bills fluctuate each quarter, you should base the average expense on the highest bill you’ve received. This will ensure you aren’t under-budgeting. 

3. Decide on a spending limit

Analysing your income and expenses will give you an idea of your spending habits. Whether you splurge on clothing or love to dine at fancy restaurants, we all have a guilty pleasure when it comes to spending. It’s important not to deprive yourself of these when budgeting, as it can cause you to become unmotivated with your financial goals.

Once you subtract your total expenses from your income, you’ll be left with a chunk of money for spending (and saving). A smart way to set your spending limit whilst considering savings is to budget your desired savings amount as an expense.

It’s a good idea to think of your spending money as your ‘wants’. Whether it’s entertainment, takeaway, or general hobbies that you like to spend your money on, have a rough idea of your spending plan for the week, fortnight, or month – depending on pay frequency. This will ensure you have enough set aside to cover your spending without touching your savings. 

Tip: If you find your expenses are decreasing, assign the extra cash in your account to savings rather than spending.

4. Plan your savings goal/s

Whether you’re saving for a house deposit or an overseas trip, it’s great to have a savings goal that you’re working towards. Figure out how much money you need to achieve your goal, and in what time frame you’re hoping to reach it. Using this desired time frame and your income frequency, calculate how much you’ll need to set aside to achieve your goal on time. Both short-term and long term financial goals are great to have, as they keep you motivated with your money management. 

It’s also a smart idea to have a ‘rainy day’ fund. Setting aside a small amount of money each pay to cover emergencies and unexpected costs can save you when you’re hit with unforeseen expenses. 

5. Re-evaluate from time to time

Your financial situation will change over time. You might get a pay rise at work, or take out a loan to purchase a new car. Each time your income or expenses change, you should adjust your budget to reflect this. Earning more income could mean putting more money towards repaying debts, or adding more into your savings account each pay. 

Tip: Take your budget one step further by creating separate accounts for your money. For example, you might set up a transaction account for bills and expenses, another for everyday spending, and a savings account to earn bonus interest that you won’t touch. Use these accounts to set up automatic transfers and withdrawals to cover bills and regular expenses. 

Final note

Budgeting is an excellent way to stay on top of your finances and ensure you are being smart with your money. Whether you use a downloadable planner, create your own spreadsheet, or handwrite your budget, finding what works best for you is the first step to achieving your financial goals. 

If you’re looking for more information on budgeting and other financial tips, check out our other articles here


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