How to make a budget | ASB

Knowing how to budget can make managing your money easier. Watch the video to learn how to make a budget. Get tools to manage your money at asb.co.nz/manage-my-money or watch more ASB money tips at asb.co/asbmoneytips

The most important part of budgeting is making it real; start by writing your budget down or creating a spread sheet to keep track of your budget.

Firstly, write down your take-home pay, plus any other income such as income from investments, rental income, or anything else.

The next step is to list your expenses. Start with major expenses like mortgage or rent, and weekly groceries. Add necessary living expenses next; including power, gas and petrol. Don't forget any regular payments that you have such as credit card and hire purchase payments.

Complete the list with any personal expenses or 'nice to haves'. It can be a good idea to set yourself an allowance for these items.

Now, compare your income versus expenses. If your expenses are greater than your income, you'll want to look at reducing your expenses so you don't fall into debt. If your income is greater than your expenses, you're in good shape so why not look to setting a savings goal, such as a holiday or retirement?

For more ideas to help manage your money, check out other ASB Bank money tips at asb.co/asbmoneytips