The Death of the Household Budget

Budgeting is of one of the most important factors when it comes to running a household. Managing your expenses based on a bank statement may be ok in the short term, but it doesn’t allow people to plan long-term future goals such as retirement or buying a house, nor does it allow for emergency situations such as car repairs, illness or losing your job.

In January and February 2014, Fairgo Finance commissioned their first independent financial study, looking at how the typical Australian manages their finances. The results were shocking and revealed that a staggering 70% of the people questioned did not have a proper budget in place.

When questioned further about the reasons why a budget was not used, participants had similar answers with 50% stating that the issue was too complex and confused them. Others explained that they had been delaying creating a budget as they were terrified by what would be revealed.

As part of the report, Fairgo Finance created an infographic, visualising their findings.

Original Source of Infographic – https://fairgofinance.net.au/budget-shell-be-right/