We all have those big bills that seem to come around quickly, like our energy bills, car rego and insurance, private school fees etc.
For many of us, it doesn’t matter how well we think we’re going, there will always be those bills that seem harder to budget for.
So here’s a great savings tip to eliminate bill shock. All it takes are 3 easy steps!
Step 1
Work out how much you need to put aside each pay period to cover the annual cost of each large bill.
Step 2
Add 5-10% to cover price increases.
Step 3
Each pay, put this money aside in a separate bank account. Ideally look for one that earns better interest than your everyday account. Treat this account as untouchable and avoid temptations like using it to pay for weekends away or extra holiday spending money. Then, when those big bills come in, you’ll have enough savings to comfortably cover them.
If you find accessing these savings too tempting, check with each service provider to see if you can make regular advance payments. Then, when your bill arrives, the final amount payable will be greatly reduced because you have made those pre-payments.
Self-employed?
If you’re self-employed, try paying yourself a regular amount each week, fortnight or month. Consider this as your wage and follow the same steps as above.
For straight-forward, practical accounting, taxation and financial advice
contact our knowledgeable team at SVA and WPA by calling 02 8850 0388.
