Frequently Asked Questions
Will a Spending Plan be restrictive?
Rather than being restricting, following a Spending Plan will provide you more freedom to fulfilling long-term goals like purchasing a house, paying off debt or building a savings fund. One might speculate “Budgeting is too complicated” or “It takes too much time” – that is not necessarily true. The rewards of implementing a Spending Plan, exceedingly outweigh any time you will spend creating it. Don’t deny yourself the sense of well-being that results in achieving your financial goals.
I manage my finances well, how will a spending plan benefit me?
It is highly likely that having a spending plan will help you do even better. It will show you how much you are able to allocate to saving and how quickly your savings are growing. It will actually relieve you of stress as it will reinforce how great you are actually doing!
I'm having trouble securing a mortgage, how will a spending plan help me?
Having a spending plan can help you work towards getting a mortgage by helping you reduce your level of debt, increasing your savings ability and will show a lender that you can consistently save for your deposit.
I’m retired, what can a spending plan do for me?
When you are retired it is vital that you focus on your finances. Creating a spending plan will achieve this for you. Once you’re paying attention to money, you’ll be more likely to make even wiser choices about how you spend, save and invest. Whatever form of income you are receiving in your retirement you need to maximize your spending power and that is what a spending plan will do for you.
If I have a spending plan and my circumstances change, what happens then?
Having a spending plan does not mean that your finances are set in concrete! As things change in your life, as expenses or incomes change, you make the necessary changes and then you will have a new, workable spending plan to follow for the next 12 months.
How much time do I need to allocate to my spending plan?
Once we have created your spending plan, all you need is 5 to 10 minutes a week to compare your bank balances with your targets – as per your spending plan.
I live in a remote location in the middle of nowhere! Can you still help me?
Yes, as long as you have email and phone access we can still assist you in creating a spending plan. Where you live is no barrier to us being able to help you gain financial freedom!
I don’t think I earn enough money to have a spending plan. How will having one help me?
Rather than focussing on how much you earn, a spending plan on focusses on how you spend it. You learn how to control your cash flow, your bank accounts and how to pay your bills and expenses.
A spending plan will help optimize your financial situation based on whatever your level of income is. When there’s not much coming in, you have to be completely aware about what you do have. Creating a spending plan will show you exactly what lifestyle you can comfortably afford no matter what your income is and it will help you to stay out of the financial ‘debt trap’ even if your income is a challenge.
What’s the difference between a Spending Plan and a cheap Budgeting App?
Budgeting apps are like any budget they give you target amounts for the year, but don’t tell you that a particular bill is due 2 days before your payday and that there won’t be enough in the bank to cover the bill. It doesn’t tell you how to structure your bank accounts in a way that will help you to have that money available when the bill is due. A budget tells you the destination that you need to be at but not exactly how to get there.
A Spending Plan is Like a GPS for your money giving you details directions on how to get to your financial destination. You will know how much you need to have in the bank on any given day to be on track with your plan. You will also have your Spending Planner to help you get started, make any changes and teach you how to use the software.
I have just left school and have secured an apprenticeship. Will a spending plan be of benefit for me?
What an ideal stage of your life to create your first spending plan. It will give you the valuable life skills of being able to manage your finances successfully right from the word go! Even saving a small amount a week can lead to big dollars over time when you take into account the power of compounding interest.
I am in my late 50’s, I still am paying off a mortgage and have other debts as well. Can a spending plan help me or am I too old?
You are never too old to plan. Whatever stage of life you are at, a spending plan will be of benefit.
Your spending plan will enable you to do what if calculations and work out the best way to pay off those debts. It can also help you to work out what amount you will need on a regular basis to be comfortable when you are ready to retire.
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The time to regain control of your financial life is now! So contact us to start your journey to financial success.