Balancing a budget

If you have more income than expenses, you will have a surplus. Make a plan for what you want to do with your surplus - you can keep it in a "rainy day" savings account, open an investment account that you can use for your kids' college, join KiwiSaver, determine how much you need for that vacation or new car you've had your eye on - so you don't end up letting it slip through your fingers. 

If your expenses are more than your income, you will have a shortfall. It's an awful feeling not to have enough to cover all of your necessities.  That's when having all your expenses tracked is so vital: if you know where every dollar is going, you can determine which are spent on things that you absolutely need, and which can be trimmed back. Even a few dollars here and there will add up, and you will start to feel more power over your money instead of money having power over you.

Did you know: If your expenses are more than your income, you are not alone. A 2007 survey from statistics NZ found: 49 percent of NZ households say that their income was not enough or just enough to meet their everyday needs for such things as accommodation, food and clothing. For households with a total income of more than $98,800, the figure was 21% while for households with a total income less than $25,800, the figure was a staggering 69%!

Source Statistics NZ

Next, see setting goals and then check out Finding Money to Save  by cutting expenses and increasing your income.