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2018: New Year = New Budget!

With the summer holidays behind us and the new year underway, this is a perfect time to review our finances and plan for the year ahead. Budgeting is a simple and smart strategy to track your outgoings and minimise the impact of costly surprises throughout the year. Put simply, the “bucket” method requires multiple bank accounts with regular deposits allocated toward specific categories of spend. Here are some budget ideas to help you plan for the year ahead;


Christmas: wouldn’t it be nice to have a credit free Christmas? Calculate the approximate cost of your recent Christmas spending and divide by the number of pay checks left until December, which could include; purchasing gifts, groceries, alcohol, social outings, taxis, cleaners, gardeners, equipment hire etc. Now is the time to start budgeting for next Christmas. As an example; $50 per fortnight is achieveable and equates to $1300, which is a great step towards a stress free Christmas!


Kids Bills: with the cost of starting a new school year following Christmas and summer holidays, this account is used for the cost of education, sports and extra curricular activities for your children, including; school/child care fees, uniforms, books, musical instruments, tutors, stationery, clothing, shoes, sports club membership fees, camps or other expenses. This should reduce any nasty surprises throughout 2018 and also help with the cost of preparing your children for school next January.


Kids Fun: use this account to deposit a small amount per pay to cover weekend fun and school holiday activities, such as; movies, mini golf and tickets to see the travelling circus. It can also be used to cover the costs of organising children’s birthday parties. It does not need to equate to much, but it will save you a lot of stress when the kids are suffering from ‘cabin fever’ when funds are low!


Fitness/Wellbeing: if your New Years resolution included health and fitness goals, now is the perfect time to start a seperate wellbeing account. This account can be used for gym memberships, health insurance, massages, yoga, fitness equipment (ie; new fitness clothes and shoes), sports club fees, dance lessons and anything that makes you feel good! Work out what you are likely to spend in this category per month and stick to your 2018 fitness goals. Plus, any surplus funds can be donated to a charity - altruism is also good for your soul. Win-win!


Although this budgeting method may seem trivial and segmented, it is satisfying to know that you have funds available for expenses that are often overlooked (ie; kids bills). These ideas should be included as part of your annual household budget for living expenses. Remember: failing to plan is planning to fail, so it’s time to make 2018 your year to prosper and conquer your financial goals!

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Last updated 2020

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