Why am I still broke with a full time job?
Have you ever found yourself wondering why the weeks seem longer than your pay cheque? Or an automatic debit bounced – again – and you know your family earns great money, but there just doesn’t seem to be enough? And then you feel guilty that somehow, despite all your experience at managing the household, this seems to keep happening?
This is a common feeling at the moment in Australia. You’re not alone.
The change from a small budget to a bigger one is a profound but subtle step. Initially, the family was probably excited, and without realising it, your expenses ballooned to fit the new cash! It was party time! But now the party is over, and it’s time to focus on the other (fun) parts of money – saving some of it.
Yes, saving money can be fun – especially when you know where it’s going and when you’re going to get there!
High income doesn’t mean financial security. When we are building towards a great income, we have habits and systems that get us to that lofty goal. But once we’re there, the rules change, and it takes time to realise that the same systems and habits need to be reassessed and sometimes changed.
Money comes with a lot of emotional baggage. Being aware of this, and working towards clear goals will help anyone develop better financial skills in their home budget.
What’s the difference between broke and poor?
Broke implies your lack of cash is a temporary problem. This can mean you’re between pay cycles. Broke means the power bill is due but you’ll be a few days late – you know money is coming in, it’s just not there at the right time and place.
Being or feeling poor is related more to poverty – there’s no money coming in, or there’s never enough and you know there’s not enough. There’s no expectation of relief. It’s an awful place to be in, and 13% of Aussies were classed as below the poverty line in 2022.
How do I find out where my money goes?
There’s some great ways to find out, but the big thing you absolutely MUST do, is track your spending for a while. Or grab all your bank statements and a highlighter and find out!
You can now download your transactions from your online banking service, which is a great way to take a peek. Use spreadsheet software (Google Sheets, Excel, or others) to sort through your expenses. These spreadsheets can total up your expenses for you, so it gets even easier to see just how much you spend. Or if your bank enables categories, get coding straight in your banking app and run some reports to check your totals.
You may be surprised to find what the biggest expenses are. Transport, housing, and food are often the largest categories. Tracking is just the start to great intentional money management. You need data before you can make decisions that you will stick to.
What is a good budget?
A good budget is one that supports you and your family through the everyday needs as well as builds something towards the future. Whether it’s extra superannuation, a holiday, a new house or a new family member, your budget is unique to you and your family. A good budget is one you build with love and intention to create abundance for your family, that match your values.
Once you have your data from tracking, you can see what categories might need a trim, and what simply can’t be changed. Then you can also start spending half an hour each day contacting businesses and making sure you’re getting the best deal possible for your money.
Creating your home budget is also a great way to teach your family financial responsibility, and get your partner and you on the same financial page. I offer a package with Xero to track and maintain your budget. Just five minutes over breakfast and your daily bookwork is done! See the PACKAGES link above to see your options.
When you have your household budget in place and a routine of checking it, it’s easy to see how much extra cash you have to invest. You can see where you can make changes and see how your financial position is growing over time.
