Managing Your Money
Budgeting, saving and spendingManaging yourmoneystart here
About MoneysmartThe Australian Securities and Investments Commission’sMoneysmart program helps you take control of yourfinancial life. To support the money decisions you makeevery day, Moneysmart provides free calculators, tips andguidance for all Australians.Visit Moneysmart to:Manage your moneyMake informeddecisionsReduce your debtPlan for your futureGrow your wealthTeach studentsabout moneystart heremoneysmart.gov.au
Managingyour moneyTake charge of your moneyWant to know the secret to being betterwith money.In just a few simple steps, you can takecontrol of your money, instead of feelinglike it controls you.Whether you have a little moneyor a lot, this booklet will help you: get off the treadmill of livingpay-to-pay ease money stress and stay on topof your bills and commitments direct your money to whereit matters most set goals so you can enjoymore of the good things in life.Steps to taking control of your moneyStep 1Step 2Step 3Step 4TrackComparePrioritiseActyour day-today spendingmoney in andmoney outwhere youwant yourmoney to goto make yourmoney workfor youSee page 02See page 06See page 12See page 21Managing your money01
Step 1Track your day-to-day spendingWhere is my moneygoing day-to-day?You may think spending up on big thingsis what gets you into trouble with money.But often it is the everyday little thingsthat end up costing more over time.Where does your cash go each day?It’s easy to lose track of 5 here, 10 there.Do a spending diaryThe way to find out where your money isgoing is to do a spending diary. Make anote of everything you spend for one payperiod or at least a week. This will onlytake a few minutes a day.You can do this just for yourself,or together with a friend or partner.moneysmart.gov.auGet to know your habitsTracking your spending is a reality check.It’s not about judging yourself, it’s aboutgetting to know yourself better.By looking closely at your daily moneyhabits, you will be able to make realisticchoices about where you want yourmoney to go.
Track your spendingUnderstand your daily spending habits5 minutes a dayChoose howlong to trackDecide how long to track your spending: one week (minimum) two weeks (if you get paid fortnightly) four weeks (if you get paid monthly).The important thing is to do it every day.Get a notepador appDownload an app or get a small notepad to use as yourspending diary. Take it with you wherever you go.Record whatyou spendRecord everything you spend. Do this straight away.Keep receipts if you buy a few things at once. Don’t try to alteryour spending habits. Just notice where your money goes.Add it upAt the end of the tracking period, add up everything youhave spent. Now you have a good snapshot of your currentday-to-day spending.Managing your money03
Sample spending diaryDayAmountWhat I boughtMon 23rd 50Weekly train ticketMon 4CoffeeTues 24th 5MagazineTues 4CoffeeTues 59ShirtSmart tip:Simple ways to save moneyThere are many ways to make yourmoney go a bit further.Here are a few: Join your local library –borrow books, audio books,magazines, CDs and DVDs for free. Look for pre-loved bargains –check op shops, free onlineswap meets and local marketsfor bargains.moneysmart.gov.au Be creative – involve friends orfamily in coming up with ideasfor fun, low-cost entertainmentsuch as picnics and outings,free exhibitions, half-price moviesand shows. Make small changes - stop buyingtakeaway coffee, make your lunchat home and bring it to work,cancel your gym membershipif you don’t use it and start walking.For more simple savings tips, go tomoneysmart.gov.au.
Case study:Maria saves for a holiday‘I am planning to go for a beach holidaynext year.After doing a spending diary, I made afew small changes to reduce my dailyspending. I am now saving an extra 100a month towards my trip.Sun and sand, here I come!’Managing your money05
Step 2Compare money in and money outWhere is my moneygoing month-to-month?Now you know where your cash isgoing day-to-day, the next step is tolook at where your money is goingmonth-to-month.How much money is coming in?How much is going out?Think about where your money goeseach month: weekly basics like food, groceries,transport regular bills like rent or mortgage,electricity, phone, insurance less frequent spending like clothing,holidays, car registration, medicalexpenses.moneysmart.gov.auDo a budgetThe best way to take control of yourhousehold finances is to do a budget.This is a simple tool that helps youunderstand the money going in and outof your household.It shows you if you are spending moreor less than you can afford.You can then take action to find the rightbalance between spending and saving.
Smart tip:Use our free online budget plannerWant your computer or device to dothe hard work for you?Go to moneysmart.gov.au to get ourfree budget planner.No calculations to do — the budgetplanner does it all for you.You can also use our simple moneymanager — a quick and easybudgeting tool translated intocommunity languages.It is easy to use and you can printyour results. You can use either theonline version or the downloadableExcel spreadsheet.Managing your money07
Do your budgetUnderstand the money going in and out of your householdeach month30 minutesYou will need: the budget planner from moneysmart.gov.au, OR the tear out planner at the back of this booklet.Put your details into the budget plannerGather details ofyour incomeHow much money is coming in?Check pay slips, bank statements and investmentstatements.If your income is variable, make an estimate based onyour past year’s earnings.Gather details ofyour expensesHow much money is going out?Look at bills, bank statements, credit card statements,your spending diary (page 03), receipts and shoppingdockets.Use your best guess if there is anything you can’t find,or if bill amounts vary across the year.Put your income andexpenses into thebudget plannermoneysmart.gov.auWhat is my current situation?Put your income and expenses into the budget planner.
Case study:Neal stays on top of a variable income‘I run my own business as a landscaper.So my income and expenses go up anddown through the year.At first, I found this hard to manage.But doing a budget helped a lot.To work out my monthly cash flow,I looked at the total of what I earnedacross the year. Then divided by 12 toget an average.When I earn more than usual I put theextra into savings, to get me through theleaner months.’Managing your money09
Compare your incomeand expensesOnce you have done your budget,it is time to compare your incomeand expenses.Is your income higher or lower than yourexpenses? That is, are you living withinyour means or spending more than youcan afford?I am spending less thanmy incomeThat’s great, now you know how muchmoney you have to put towards yourgoals and lifestyle choices. Your nextstep is to fine-tune the balance betweenyour spending and saving. See Step 3(page 12) for guidance.I am spending more thanmy incomeThis is not the end of the world, but youdo need to take action to fix this.Keep spending more than you can affordeach month and you risk sliding into debt– easy to get into, harder to get out of.Your next step is to reduce yourexpenses to an affordable level. See Step3 (page 12) for guidance on this.When you’ve got that sorted, you’ll beable to move on to planning for yourfuture goals.Smart tip:Get free help with sorting out debtsIf your debts are getting out of controlor you are struggling to make endsmeet, there is help available.A financial counsellor can help youget a clear picture of your situation,understand your options and workout a budget.moneysmart.gov.auTo find a free financial counsellingservice near you, go tomoneysmart.gov.au. Or call theNational Debt Helpline on1800 007 007.
Case study:Suzette and friends talk about money‘Being on my own, it can be tough havingto make every decision about moneyby myself.Recently, I’ve been finding it really hardgoing.So I decided to talk to a few of my friends.What a relief!It turns out that all of us have had moneyissues at some time.Now we can support each other.’Managing your money11
Step 3Prioritise where you wantyour money to goHow do I make mymoney go where itmatters most?The next step is to refine your budgetand direct your money to where itmatters most. This will help you findthe right balance between spendingand saving.How does a budget workin practice?It might sound simple, but usingbuckets is a good way to sort out yourmoney priorities.Imagine you have a big bucket filled withwater. This represents all your moneycoming in – the total income you enteredinto the budget planner.Then you have three smaller emptybuckets to help you work out where youwant your money to go.Of course you can’t pour out more waterthan you have. So, with the amountavailable, you decide how much to putinto each bucket.moneysmart.gov.auHow to use the budgetbucketsFirst, put in enough money from yourincome bucket to take care of yourneeds. These are the basic necessities,the expenses you have to pay in orderto live.Then, work out what you can affordfor your wants. Divide up the rest ofyour money between your savingand spending.
Divide your money between the bucketsMoney inYour income Your take-home pay Your partner’s take-home pay Centrelink benefits Family benefit payments Child support receivedMoney outBasic necessities (needs) Rent or mortgage Food and groceries Gas, electricity and phone Transport Health careGoals (wants) Paying off debt Growing savings Education Buying a carExtras (wants) Eating out and entertainment Recreation, personal spending or pocket money Gifts and donationsManaging your money13
Prioritise your needs and wantsIdentify where you can reduce your expenses and save money20 minutesHow to reduce your expensesYou will need: your budget created in Step 2(page 06).First, highlight the most important thingsin your budget – your needs or basicnecessities.Then, identify the things you want butcould do without, if you had to.What can you cut out or cut back?Smart tip:How to increase your income Are you getting all the Centrelinkbenefits you are entitled to? Could you earn more money frompart-time work or hobbies?moneysmart.gov.au Do you have any unwanted goodsyou could swap or sell? If you have adult children livingwith you, are they contributingtowards household costs?
Switch or saveSwitchSave Are there memberships orsubscriptions you could cancel or getfor a lower cost? – gym, clubs– magazines, pay tv What can you get for free or cheaperelsewhere?– use the internet at the library– watch freeview instead of pay TV Is there a cheaper mobile phone plan? Can you shop around for a better dealon car or contents insurance? Are you paying for more health coverthan you need? Could you switch to a super fund withlower fees? How could you spend less ongroceries?– take a list and only buy what is onthe list– look for home brand products anditems on special– buy in bulk and only go shoppingonce a fortnight Can you reduce your spending oneating out?– make lunch instead of buyingtakeaway– have a dinner party and askeveryone to bring a plate Can you save on your electricity bill?– switch appliances off instead ofleaving in standby mode– pay in instalments, so you have lessto pay in one goManaging your money15
List your savings and cut-backsMake a note of all the items you could cutout or cut back.Then check: Is this realistic? Do you need to cut back on all of theseitems, or just some?Even if you need to reduce yourexpenses a lot, try not to cut outeverything in your wants bucket.By allowing yourself a treat now and then,you will find it much easier to stick toyour budget. What are the most obvious ones tostart with?Smart tip:Shop with cash instead of creditWith a credit card, it is easy to spendmore than you can afford.Keep in mind that a credit card isreally a debt card.If you don’t have the money to paycash for something today, will youhave the money next month when thebill is due, plus interest and charges?moneysmart.gov.auIt is often easier to keep to a budgetif you use cash or a debit card whenshopping.Try saving up or using lay-by insteadof a credit or store card to makebig purchases like a TV or washingmachine. Pay your purchase off ininstalments, and avoid extra feesor charges.
Set goals for the futureSet goals for the future and make a plan to achieve them20 minutesHaving worked out ways to reduce yourexpenses and save money, you are readyto start planning your future goals.What do you want from life? Why?Setting goals for yourself – whether largeor small, short or long-term – is excitingand motivating. You may surprise yourselfwith how much you can achieve whenyou put your mind to it!What are some possible goals?Reduce your debtStart to savePay off:Save for: your credit card a holiday or weekend away a personal loan Christmas presents and celebrations a car loan a ‘rainy day’ fund, for big billsor emergencies your mortgage your wedding a home deposit your children’s education starting your own business extra super contributions your retirementManaging your money17
Set your goalsMake your planThink for a moment, then write downsome possible goals.Be specific about what you want toachieve, how much you intend tosave, and by when. The savings goalscalculator on the Moneysmart websitecan help you work out how long it willtake you to reach your goal.Now: What is your top priority? How much will it cost? When would you like to achieve it?If you would like to save for several goalsat once, fill in the details for each goal.Make sure this is realistic and affordable.Goal 1What:When:How much:Goal 2What:When:How much:moneysmart.gov.au
Smart tip:How to achieve your goals Start small – begin with somethingsmall (e.g. a weekend away or startan emergency savings fund). Be specific – work out exactly whatyou want and why. Share it – talk about your goal witha friend, partner and/or children,to stay motivated. Reward yourself – celebrate eachstep along the way to reachingyour goal. Be realistic – set yourself areasonable amount of time.Managing your money19
Refine your budgetCreate a household budget that works for you20 minutesYou will need: your saved budget or hand-writtenbudget planner (page 08), your list of identified cuts and savings(page 16), your future goals plan (page 18).Update your budgetSet yourspendingtargetsGo through each part of your budget in turn.Update the amounts in your budget to match your chosen cutsand savings.Add in your goal Add in the amount you are going to save for your goal (or goals).Balance yourspending andsavingCheck that the way you have put your money into each categorylooks and feels right to you: Have you been realistic in allowing enough money for youreveryday needs? Have you made enough cuts and savings to free up the moneyyou want for your goals?If not, adjust your amounts until you are happy you have thebalance working across all categories.Then print out the new version of your budget and you are done.moneysmart.gov.au
Step 4Act to make your moneywork for youHow do I make mybudget happen?Pay important bills bydirect debitNow that you have your budget working,it is time to take the final step and put itinto action.If you are regularly paid a salary orbenefits, set up a direct debit from yourbank account for the day after the moneyis deposited.The trick is to make this as easy aspossible for yourself, by making thingshappen automatically.That way you won’t have to work at yourbudget – you will make your money workfor you.This works well for things like: rent or mortgage personal loan or car repayments paying off a backlog of credit or storecard debt.If your income varies, or the bill amountvaries, keep an eye on your bank balanceto ensure you have enough money inyour account.Smart tip:Easy ways to save for your goals Start now – no matter how small theamount you can put aside. Pay yourself first – get savingsdeducted from your pay or benefitsautomatically; most people don’tmiss what they don’t see. Keep your savings separate –put your savings into a separateaccount with no ATM access. Add in your windfalls – try tosave any pay rises, bonuses ortax refunds.Managing your money21
Case study:Antonia and Jess simplify their extraspending‘After doing our budget, we didn’t wantto try to track every dollar in everycategory – especially personal spending.So we set up each member of thehousehold (two adults, three teenagers)with their own cash card account, with aset allowance to spend however they like.Not only is this easier for us, our kids arenow taking more responsibility for theirspending.’moneysmart.gov.au
Smooth out your big billsDo you find that some months are more expensive than others – due to big bills,birthdays or unexpected events? Here’s how to smooth out the ups and downs ofyour expenses.Mark yourcalendar Go through your budget (page 20) and highlight the big billsthat come less often, like contents insurance, car registrationor school fees. Work out when (month/day) each bill is usually due. You mayneed to look back at the bills you collected in Step 2 (page 06). Mark each bill on your calendar or a yearly planner – togetherwith birthdays and periodic events – so you know when youare going to need more money.Set asidemoney Add up how much your big bills cost in total for the year.If you wish, add an extra amount for gifts and celebrations. Work out how much this is per pay or benefit period(for example, per fortnight). Put this amount aside each time you are paid – by direct debitinto a separate ‘big bills’ account or whatever works bestfor you. Then you will have the money ready to cover the next big billor special event.Ask about billsmoothing Contact your utilities providers (gas, electricity, water) and askabout ‘bill smoothing’. See if you can arrange to make fortnightly or monthlypayments to them, instead of having to pay the whole billin one go.ArrangeCentrepay If you receive Centrelink benefits, ask about Centrepay. This free service lets you to pay your utilities and other bills byhaving a regular amount deducted from your benefit payment.Managing your money23
Stay on trackAfter all your good work putting your budget in place, how do you ensure youstay on track?CARE for your moneyCheck your budget at least once a year to see how you are tracking,and update amounts if you need to.Adjust your budget if your circumstances change (for example, if yourpay goes up or down, you fall ill or lose your job, get married or start afamily).Reward yourself with regular treats, so that living with a budget doesnot feel like a chore.Enthuse yourself by putting a picture or chart of your goals on thefridge as a daily reminder.moneysmart.gov.au
Go the distanceIf you keep your budget going, you canprogressively achieve bigger goals, like: going on holiday, buying a car, putting your kids through school, or saving for retirement.Taking charge of your money meansless stress, more control – and a feelingof moving forward with confidence andease.Now you know the secret to being goodwith money.A few simple steps really do make adifference.Managing your money25
Budget plannerGather details ofyour incomeHow much money is coming in?Check pay slips, bank statements and investmentstatements. If your income is variable, make an estimatebased on your past year’s earnings.Gather details ofyour expensesHow much money is going out?Look at bills, bank statements, credit card statements,your spending diary, receipts and shopping dockets.Use your best guess if there is anything you can’t find,or if bill amounts vary across the year.Put your incomeand expenses intothe budget plannerMoney in:What is my current situation?Put your income and expenses into the budget planner.Adjust all amounts to the same frequency (this planneruses fortnightly figures).1. Your fortnightly incomeWagesYour take-home pay PaymentsYour partner’s take-home payCentrelink benefits Family benefit payments Child support received Bonuses/overtime Refunds/rebates Income from savings/investments Other income Other**Divide by 26 (amount 26) to convert yearly amounts to fortnightly.Add the above for your total fortnightly incomemoneysmart.gov.au1Total
Money out:2. Your fortnightly spending*ShoppingEating rket Fruit/vegetables Other food/groceries Baby products Cosmetics/toiletries Clothing/shoes Pet productsRestaurants Takeaway/snacks Coffee/tea Alcohol Movies/music Bars/clubs Personal allowance Pocket money Newspapers/magazines Pharmacy/prescriptions Gym/sports membership Cigarettes/gambling Trains/trams/buses/ferries Petrol Road tolls/parking Savings Extra super contributions Other goals Other fortnightly spending *Multiply by 2 (amount x 2) to convert any weekly amount to fortnightly.Add the above for your total fortnightly spending2Total
3. Your monthly spendingHomePaymentsRent/mortgage Car loan repayments Other loan repayments Credit card repayments Child support payments Communications Mobile phoneOther Home phone Internet Pay TV Other monthly spending Step 1Add the above for your total monthlyspendingStep 2Multiply monthly total by 12(monthly total x 12) yearly amountStep 3Divide yearly amount by 26(yearly amount 26) fortnightly amountSmart tip:Use Moneysmart’s free onlinebudget plannerGo to moneysmart.gov.au to getit. No calculations to do – thebudget planner does it all for you.moneysmart.gov.auTotal 3
4. Your quarterly ity Gas Water Council rates Body corporate fees Doctor/medical Dentist Chiropractor/physiotherapist Other health Vet/pet care Childcare/pre-school fees School fees Uni/TAFE fees School uniforms Sport, music, dance, etc Excursions Other quarterly spending Step 1Add the above for your total quarterlyspendingStep 2Multiply quarterly total by 4(quarterly amount x 4) yearly amountStep 3Divide yearly amount by 26(yearly amount 26) fortnightly amountTotal 4 Managing your money
5. Your yearly ionsOtherCar registration Car maintenance Home maintenance/repairs Furniture Appliances Home and contents Car Health Travel Pet Holidays Celebrations Donations/charity Gifts Subscriptions/memberships Other yearly spending Step 1 Add the above for your total yearly spendingStep 2Divide yearly total by 26(yearly total 26) fortnightly amountmoneysmart.gov.auTotal 5
6. Your budget calculationMONEY IN: Put the total from Box 1 hereATotal fortnightly income MONEY OUT: Add the totals from Boxes 2, 3, 4 & 5 and put their combinedtotal hereBTotal fortnightly spending THE DIFFERENCE:Subtract Box B from Box A and write the answer hereCTotal income – total spending If the amount in Box A is bigger than Box B, then you are spending less than yourincome.The amount in Box C is the amount you have left over each fortnight to puttowards your savings goals and lifestyle choices.If the amount in Box B is bigger than Box A, then you are spending more thanyour income.The amount in Box C is the amount you are spending each fortnight above whatyou can afford.Managing your money
moneysmart.gov.aucall ASIC: 1300 300 630DisclaimerPlease note that this is a summary giving you basic information about aparticular topic. It does not cover the whole of the relevant law regardingthat topic, and it is not a substitute for professional advice. Australian Securities and Investments Commission 2019ISBN 978-1-925670-42-4 October 2019
direct your money to where it matters most set goals so you can enjoy more of the good things in life. Steps to taking control of your money Step 1 Track your day-to-day spending See page 02 Step 2 Compare money in and money out See page 06 Step 3 Prioritise where you want your money to go See page 1
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and deployment of funds. Money market is the instrument which have less than one year as a maturity period. The most active part of money market is the overnight call money and term money between the Banks, Financial Institutions, as well as Call Money market transaction. Call money or Repo are the two short term money market products.
-PART ONE: FAKE MONEY - In 1971, President Richard Nixon took the U.S. dollar off the gold standard. In 1971, the U.S. dollar became fiat money government money. Rich dad called government money fake money. He also said: Fake money makes the rich richer. Unfortunately Fake money also makes the poor and middle class poorer.
The ability to manage money has to be learned, developed, and practiced on a daily basis. There are eight steps to successful money management: 1. Get organized. 2. Decide what you want to do with your money. 3. Look at all available resources. 4. Decide how much money you are worth. 5. Find out how much money you make. 6. Find out how much .
9. There are many sayings about money. Which one best reflects your family’s attitude about money while you were growing up? Check one and explain why. m Money doesn’t grow on trees. m It’s only money. m A penny saved is a penny earned. m Money is burning a hole in your pocket. m Money can’t buy hap
YOUR MONEY MATTERS! YOUR RELATIONSHIP WITH MONEY 02 YOUR MONEY MATTERS! YOUR RELATIONSHIP WITH MONEY As a young adult your relationship with money will still be quite new. You need to be able to understand the basics of finance and financial systems in order to learn to manage
MONEY MATTERS 6 Money Matters 1: Setting a Budget How can budgeting now help me make a big purchase later? Money Matters 2: Take it to the Bank! Why should I have a bank account and how do I use one? Money Matters 3: Keeping Track of Your Money How can I keep track of the money in my checking account?
This study investigated microRNA and mRNA expression and protein function associated with DNA repair in human oocytes and embryos. MicroRNAs have been shown to down-regulate and in some cases to stabilise the expression of several genes including repair genes. The first aim of this study was to analyse the differences in the expression of microRNAs and their target mRNAs involved in repair .
