Creating a budget

A budget is one of the most important tools you have to get your finances under control. If you have a budget, and stick to it, you’ll enjoy more control over your money.

Why is a budget important?

  • Without a budget, you are financially blind as it's more difficult to track where your money goes.
  • You’re more likely to live from one payday to the next.
  • If you’re unsure about what you can afford, your financial situation is more likely to be a source of stress.


What are the benefits of having a budget?

  • Having a budget is the first step towards achieving financial freedom.

  • You will have a better understanding of your spending habits.

  • You will have more control over your finances.

  • You’ll be able to make smarter plans for the future.


How to create a budget

  1. Know where you money is going. Keep a spending diary for a first few weeks and write down everything that you spend your money on. Your diary will give you a clear record of where your money is going.
  2. When you’re ready to create your budget, download our budget template and add in your details. You will be able to quickly work out what your expenses are compared with your income. Next, prioritise where you want your money to go by focussing on your needs first.
  3. Review your budget – if your expenses are greater than your income you will need to prioritise where you want your money to go by focusing on your needs first.
  4. If you need help, you can contact the National Debt Helpline on 1800 007 007. A financial counsellor will work with you to help you create your budget. This service is free.

Budgeting tool

Use this budget template to create your own budget today.

  • Budgeting tool
    32.5 KB
    Download xls


Take action
Don’t ignore any letters or communications sent to you by the creditor. The sooner you can discuss alternatives with them, the better.
Make a payment plan
Work out a budget that you are sure you will be able to stick to, then contact your creditor to set up a reduced payment agreement. Keep to the agreement that you set up with the creditor.
Know your rights
Know your legal rights by speaking with a legal representative.
Talk with a financial counsellor
Before your car is repossessed, check your contract to confirm that your car is secured on the loan, e.g. held as security. If you don’t have a copy of your contract contact your creditor to ask for one.
Set yourself some savings goals.
Pay as many bills as possible by direct debit.
Put some money aside for big bills, such as car registration.
Go back and review your budget every other month.

Additional information

Contact us

women meeting with finance councillor
Looking for guidance?
Contact us today to organise a meeting with one of our financial counsellors.

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