Ready... Set... Budget!

By Tina Zawila

So we are on the starting line…a new financial year before us.  This is usually when we promise ourselves that this year will be different from the last, we will make more, save more, have more!  However, for most people, this tends to be a bit of an empty promise, without any real idea or plan as to how this will eventuate.

For others, they have a clear plan for their financial future and it’s called a Budget.  I know, it doesn’t sound life-changing!   However, this is the key to give you any chance of achieving your financial goals, strategies, priorities and plans.

Think of it this way.  You generally don’t just jump in your car and drive without a destination and map at hand.  Yet most people drive their business or household finances without a plan and without clearly defined financial goals!

Without deciding where you want to go and how you are going to get there, how do you know if you are heading to the right place or on the right track?  How can you anticipate the bumps in the road, the detour opportunities or the short cuts?

Take the time now to consider your 2017/18 budget and seek professional help to guide you.  At Sothertons, we prefer to use what we call “Bottom Up Budgeting”.  Work out what you want in terms or profit, funds to meet loan payments and savings and then work up from there  - add your costs to determine the level of revenue  you require to achieve your goals.

For maximum benefit, use your budget proactively.  Don’t just set and forget.  Monitor your progress.  Refer to your budget before making major financial decisions.  These days there is software available that makes managing your personal or business finances a breeze. 

Don’t wait for another year to pass where you are left wondering where your money went.  Call the finance professionals at Sothertons on 4972 1300 and let us help you turn your financial dreams into reality.