There are lots of online tools to help you create a budget ASIC has a good one, or I created one in good ol' excel, edit it to suit you, I have taken and added extra bits over the time. If it doesn't work for you, you won't use it so make sure it makes sense to you. Save a copy and edit it as much as you like.
To get my yearly figures I logged onto each utility provider online and added up the last 12 months worth of bills. Or you can log onto your online banking and use the search function to find how much you paid in a certain date range. Then I divide by our pay cycle hubby gets paid fortnightly so I pay 26 times a year and I try and round up to the nearest $10 amount. Not possible at the moment but once this personal loan is knocked down I can.
When I first entered all our bills, I was shocked I knew it was tight but I didn't realise we were going backwards every month. It was hard to see but after I knew I started researching the best quotes around and ringing current providers to see what they could offer me. I ended up saving $400 a month, we are still behind but it's helped heaps!
Then I rang all over due bills and organised payment plans with each and kept in touch letting them know if one fortnight was going to be less. It's still a struggle, hubby's pay varies due to shift work even though some weeks we don't even make the minimum repayments I can still see the light at the end of the tunnel.
For people just starting I highly recommend The Barefoot Investor his book has been invaluable, back in 2007 when I first picked it up and the revised current edition is even better.
Knowledge is power, you need to know your figures!
Hi There, I'm following your blog and noticed it's been a little quiet for a while. Hope everything is going ok? Don't lose sight of your goals, even if you have a few months that go backwards (thanks rates and bills!). My goal is FIRE too, no kids here but partner unemployed for 5 years now making the goal a bit tougher to chase. I follow The Barefoot Investor too (for the most part). Hope to see a fresh blog post soon. :)
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