The humble old Household Budget

Hello again

I announced late last year that it was 15 years since Simply Budgets began. In that time I have learned a lot about people and money.

One thing I have learned is that many people go looking for ‘the’ sexy big thing that will fix up their money mess (debts caused from spending slightly more than they earn each week over a long period of time).

This often leads to more trouble because they do not have the expertise to pick a great investment and they end up speculating (and calling it investing!).

In the end it was a small weekly leak that led to frustration, then a sense of despair and then a poor decision that made things worse!

That puts pressure on relationships and sadly some break.

So, the solution to the whole problem comes back to the humble old home budget!

Most people have no idea HOW to prepare a family budget that actually works and that is why the conditions become perfect for what I have described above to occur!

In a typical old garden variety family budget people average all their income and expenses down to a regular time frame (e.g. Weekly, Fortnightly or Monthly). This gives a total of Ins and Outs for the chosen time period and so it identifies whether there is an Income surplus or shortfall. Beyond that it is pretty useless.

Knowing it is POSSIBLE to pay your bills does not help much if you do not have a roadmap that shows you HOW to pay them. You need money available WHEN the bills arrive and the only way to ensure that can happen is to prepare a forward looking cash-flow budget.

A cash-flow budget gives target bank balances to aim for throughout the next year so you always know when you are on (or off) track. I have specialised in developing this method of budgeting because it is so amazingly effective.

If you have ever been frustrated by the constant pressure of trying to pay your regular repeating bills I would suggest that you should open a ‘Bills’ account and prepare a Cash-Flow budget for your 10 most troublesome large expenses on your yearly calendar and isolate them out of your normal day to day finances. They then get paid from this ‘Bills’ account and cause no further stress because they can be paid on time from this stash of money you have put aside solely for that purpose.

The Simply Budgets software I developed allows you to forecast future bank balances for repeating regular expenses so you can locate the worst day of your next year for that bills account and ensure that the bank balance on that worst day is not a negative number and you can join the dots between the present and the worst day and back to where you started in 12 months time. Having those target bank balances to aim for every day makes it so easy it just works!

Nobody would get on board a ship or a jet plane expecting to get to their destination without plotting the course connecting where they are and where they want to go! The same should apply to your financial journey.

If you want to become wealthy you need a road map to follow.

The most important part of your financial journey is simply making sure your day to day finances are in order and it becomes so much easier once you grasp this.

While you are stressed about your day to day money issues you can not keep a clear head for planning the big picture!

Who would have thought a budget was SO important?


Last Chance

I am about to start a special group of people on my Simple Wealth Steps program. ‘Special’ because this group will get the benefit of coming on regular teleconferences with me to go over each of the lessons, what they are all about and what action should come out of them.

If you are still procrastinating over making the decision to do this course it is time to make a decision.

It is $49 a month. You will learn so much and make so many improvements to your basics during that time. You will reduce debt and grow a nest egg. You will change your attitude to money and your beliefs about it and your relationship with it.

AND you can quit at any time!

Why not give it a go?

Go to and sign up now! You really have nothing to lose and a lot to gain!


Simply Budgets Life Management & CashFlow Clinic update.

Please note that I had to postpone the dates for Sydney and Melbourne for family reasons.

Sydney is now 5th and 6th of May and Melbourne is now 26th and 27th of May.

Adelaide is 21st and 22nd of April and Perth is 28th and 29th of April.

Go to for more details of what will be covered on the Saturdays and for more information about the Sundays.

Book for the Sunday CashFlow Clinic and automatically get free admission to the Saturday Life Management workshop. A friend/partner/spouse is included in the price but you will need to e-mail me that person’s details so I know how many to cater for.

Have a great week!