Budget Management - Surviving on a Shoestring
Contents

Part 1

INTRODUCTION
INFORMATION ONLINE
A BOOK TO READ

Part 2

STEPS IN DRAWING UP A BUDGET
EXPENDITURE CATEGORIES
HOW WELL ARE YOU GOING?
WHAT TO DO?

Part 3

CREDIT CARDS
SHOPPING
ACCOMMODATION
TRANSPORT
INFORMATION AND ADVICE

CREDIT CARDS

The Department of Fair Trading website contains the following words of caution: "There are two types of credit users - those who work on a budget and those who end up in trouble."

While credit cards may allow you the luxury of deferred payments, they can cause problems even for fairly prudent spenders. If you decide that you really need one, shop around for the one that best suits your requirements. 

However reasonable the interest rates and interest-free periods, though, the temptation to keep putting things on your card should be resisted. If you are paying back only the minimum amount at the end of each month, the chances are you're heading for trouble. 

If your debts are growing, it's time to take a good hard look at yourself, sort out a list of repayment priorities and pay off those that are costing you the most in interest repayments. If when you've done this you still can't trust yourself, it may be time to bite the bullet and get rid of the card.
 

 
SHOPPING

Your budget exercise may tell you that most of your available cash, and a lot more that isn't available, is going on clothes or CDs, for example. If you find yourself powerless to resist temptation altogether, make a list of what you're after and how much you're prepared to spend, and then stick to it. If your weekends are not complete without a few hours' retail therapy, why not spend them in bargain stores or opportunity shops; you can have your fix and there's a chance you'll find the things you want at a fraction of the cost.

 
ACCOMMODATION

Unless you're still living at home, the cost of accommodation is likely to take a large slice of your income. If so, consider the possibility of a share flat. It's possible, though, that in giving up living on your own you may be sacrificing the conditions you need to be able to be able to study properly. It's a tricky one that requires a bit of thought. 

TRANSPORT

If you run a car, you may be forced to ask yourself whether you can justify and, more to the point, afford the ongoing costs of registration, insurance, fuel, maintenance and repairs. If not, it may be time to consider the alternatives - public transport? share transport? a bike? walking? These last two might also have the benefit of reducing your expenditure at the gym.

INFORMATION AND ADVICE

TAFE NSW Counsellors are a useful source of information on many study-related topics. They may provide basic advice on budgets but are more likely to refer you to community organisations such as the Smith Family and the Salvation Army. You can also make an appointment at your local Centrelink office to see a Financial Information Service Officer, who can provide information and advice. Note, though, that they do not provide financial planning services.  
 

This article reproduced from InTAFE autumn 2001 issue.
© 2001 New South Wales Technical and Further Education Commission. 
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