Page 9 - TP_Bugdeting_Booklet_A5

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8. Minimising Fees
Here are some simple tips on how you can keep your fees to a minimum and in some cases avoid them altogether.
• Find a bank account that suits you best, as you may be paying more fees than necessary. Speak to your local
bank about which account best suits your needs.
• Always use your bank’s ATMs: You may be charged a fee for using other ATMs, so find your nearest bank ATM.
• Pay and withdraw cash using EFTPOS: If you withdraw cash when you pay using EFTPOS, you’ll avoid paying
excess withdrawal fees.
• Bank online: This lets you transfer money, pay bills, print or view statements, and avoid over-the-counter fees.
• Use telephone banking:With most banks you can do most of your banking over the phone. You won’t pay any
transaction fees for using this service unless your transaction is assisted by an operator.
• Stay within your credit card limit: Going over your approved credit card limit will often attract an over-limit fee.
• Don’t overdraw your transaction account: Different fees apply if you overdraw on your transaction account. Try
to reschedule payments if you can to avoid these fees.
• Review the fees you are paying: Print your statement or view your transaction history to find out exactly how
much you are paying in fees.
Gather every financial statement you can
This includes bank accounts, mobile phone bills, internet connection fees
any information regarding a source of income or expense. The key for this
process is to create a monthly average so the more information you can dig
up the better.
Record all of your sources of income
If you are self-employed or have any outside sources of income, record
these as well. If your income is in the form of a regular pay check, where
taxes are automatically deducted, then use the net income, or take home
pay. Record this total income as a monthly amount.
Create a list of monthly expenses
Write down a list of all the expected expenses you plan on incurring over
the course of a month, including rent, car repayments and insurance,
groceries, utilities, entertainment, dry cleaning, medication expenses or
education expenses etc.
Break expenses into two categories:
fixed and variable
Fixed expenses:
those that stay relatively the same each month. e.g. rent, car repayments,
credit card payments etc.
Variable expenses:
the type that will change from month to month. e.g. groceries, petrol,
entertainment, eating out etc.
Total your monthly income and monthly
If the end result shows more income than expenses you’re off to a good
start. If you’re showing a higher expense column than income it means
some changes will have to be made.
Make adjustments to expenses
If you have accurately identified and listed all of your expenses the ultimate
goal would be to have your income and expense columns to be equal.
This means all of your income is accounted for and budgeted for a specific
expense, including contributions to your savings account. If you are in a
situation where expenses are higher than income you should look at your
variable expenses to find areas to cut.
• Money and Stuff:
• Commonwealth Bank:
Here’s how to create a budget: