Budgeting is the key to creating financial security and independence.

But having a budget in place is just the beginning: once you have a budget for your household, it’s important to make sure it’s working. This is a simpler task than setting up the initial budget, and gives you a chance to make sure your money is going where it needs to.

Here are some tips and tools for making this the year that your budget works for you.

Where does your money go?

The first step to reassessing your budget is to make sure you know what you’re currently spending your money on.

Once you know this, you can start to make cuts, find out how much you can save and establish priorities.

Try MoneySmart’s TrackMySPEND app, which helps you record all your expenses.

Review your expenses

The best place to start cutting expenses is with your bills. After all, none of us want to spend more on our monthly bills than we absolutely must.

Even if you’ve done this over the last couple of years, it’s worth reviewing your expenses again as providers may have better deals on offer.

Some great places to find cost savings include:

  • Compare the rates of different insurance companies, including your car, home and contents
  • Look at the rates and discount offerings of various energy providers
  • Talk to banks about their interest rates and fees
  • Evaluate your phone and internet providers’ value for money compared with others

Consider heading to the Canstar website to compare insurances, loan rates, bank accounts and credit cards.

Don’t forget seasonal and unexpected expenses

One area where budgets can fall down is when you forget to account for everything, including one-off expenses through the year.

Make sure your budget allows for things like school fees, car registration, Christmas presents, and annual memberships.

And don’t forget to keep a little aside for those unexpected things that come up, so that a broken down washing machine doesn’t set you back too far.

Decide on your current goals

Because your goals can change over time, it’s worthwhile listing your current financial goals.

Whether you’re saving for a house deposit, a holiday or for retirement (or a combination of several things), write down some realistic goals so you can see how much you need to save. This is a great motivator for sticking to a savings plan, with a reward that you value at the end of it.

Try MoneySmart’s TrackMyGOALS app lets you set financial goals and track your saving towards them.

Review your budget regularly

A budget isn’t a set and forget thing. Once your new and improved budget is up and running, you’ll need to review it every so often to make sure it’s still working for you, and update things if your expenses, savings goals or circumstances change.

Try Pocketbook, an app that helps you sort your money into different priorities. It can link to several bank apps so you can see exactly where your money is going.

Disclaimer: This article is not legal or personal financial advice and should not be relied on as such. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. You should obtain financial advice relevant to your circumstances before making investment decisions. Where a particular financial product is mentioned you should consider the Product Disclosure Statement before making any decisions in relation to the product. Whilst every reasonable care has been taken in distributing this article, Australian Unity Personal Financial Services Ltd does not guarantee the accuracy or completeness of the information contained within it. Any views expressed are those of the author(s) and do not represent the views of Australian Unity Personal Financial Services Ltd. Australian Unity Personal Financial Services Ltd does not guarantee any particular outcome or future performance. Taxation Information in this document should not be relied upon without seeking specialist advice from a tax professional. Australian Unity Personal Financial Services Ltd ABN 26 098 725 145, AFSL & Australian Credit Licence No. 234459, 114 Albert Road, South Melbourne, VIC 3205. This document produced in December 2018. © Copyright 2018