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Home / Rotorua Daily Post / Business

Budgeting key to survival

Rotorua Daily Post
6 Sep, 2012 07:58 PM3 mins to read

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Rotorua residents are being encouraged to reduce their expenses and focus on budgeting during Money Week.

The first annual Money Week, which ends tomorrow, has been launched by the Retirement Commission - the team responsible for Sorted. It's aimed at raising awareness of how people can better manage their money and get help as they do that.

Chief executive of the Federation of Family Budgeting Services, Raewyn Fox, encouraged Rotorua residents to learn about money and budgeting during the week.

She said some of the more common comments the organisation received included "I just haven't got enough money", "There's not enough to cover my essentials", and "I need more money to afford to live".

"It's quite common for a client to come to a budgeting service thinking they don't have enough money. Sometimes we can reduce expenses down to an affordable level - and sometimes it's true; the client hasn't got enough money," she said.

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Ms Fox said sometimes budgeting clients couldn't accumulate enough income to cover expenses.

"This is sometimes true for beneficiaries as well as income earners. A budget adviser will do everything they can to help the client reduce expenses and increase income."

Ms Fox said budgeting was a key tool towards managing money.

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"Your everyday money is your household money; the money you need to pay the bills, feed your family, and pay your rent. It's essential to learn how to manage this money, but it's not always taught in school," she said. "You can manage your everyday money through effective budgeting. A lot of budgeting is common sense, with a mix of discipline.

"One of the biggest household expenses is food. It's possible to eat well without spending a lot, and a few simple things can help you keep your supermarket shop under control."

Caring for your cash

Budgeting tips


  • Plan your weekly menu. Check supermarket mailers for good deals while planning.

  • Know how much can be spent before shopping.

  • Write a shopping list - and stick to it. Ignore nagging children, or leave them at home.

  • Take a calculator, or use self-scanners.

  • Use the cheapest supermarket in the area. Keep an eye out for the specials and be aware that local convenience stores and service stations charge extra for the convenience.

  • Don't shop when hungry.

  • Feed the kids after school. This will stop them scavenging in the cupboards and upsetting your planned menus.

  • Raise your income

  • If you're a beneficiary, are you getting all the support you're entitled to? A budget adviser has detailed knowledge of Work and Income entitlements, and might help you and your family get that little bit extra.

  • If you're a salary or wage earner, have you inquired about a pay rise? If you ask politely and can justify your request with good work, you may be surprised by what can happen.

  • In order to survive, sometimes you may need to work more than one job. A small side-job can sometimes create enough extra cash to balance the budget.

  • Do you gamble or smoke? Money spent on a $30 a week smoking habit could buy quite a few groceries. Quitting smoking can be like giving yourself a pay rise.

  • Do you have other resources you could use? If you have a spare room you could take on a boarder. If you're good at crafts could you sell them at a market.

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