5 ways to upgrade your budget

You've set up your budget and you've been following it diligently. So, it's safe to say that you understand the importance of sticking to your budget while you’re saving up to meet your long- and short-term financial goals.

Remember, you have to include saving as one of your expenses in your budget, particularly if putting money aside every month will impact what you have left over for day-to-day costs.

Here are 5 ways that you can optimise your budget to support your goals.

1. Define your goals
   
   It's important to know exactly what you're saving for. This will help you stay focused and motivated. You could be saving to build an emergency fund, a big purchase such as a new car, or for retirement. Whatever your reason, make sure you are clear about what you want to achieve. You can even write it down. Looking back at your list of goals often will keep you on track and motivated.

2. Include savings in your budget
   
   Saving tends to be something we do after we've paid the rent, filled up the car, and treated ourselves to a pair of new shoes. But leaving spending for last decreases your chances of having money left to save. What helps is to budget for saving money. It helps you get into the habit of saving and allocating a set amount of money to your savings goals. You could even automate your savings. For example, you could open a MyWORLD bank account which comes with a Savings Pocket. You can allocate money to the Savings Pocket every month and even earn interest on a positive balance. This is called ‘paying yourself first’

3. Track your spending
   
   Tracking your spending is a good way to find out what you spend your money on, and what your biggest costs are. For example, does weekly grocery shopping actually cost more than your commute? If it does, then you may want to buy in bulk or cut down on non-essential foods. So, start tracking your spending and take note of your big expenses. If you have a MyWORLD bank account, you can allocate each expense to a Power Pocket and name them after each expense. Each Power Pocket comes with its own card, PIN and account number, so you can monitor each expense. This is a good way to create a budget and ensure you don’t spend more than you need to.

4. Start investing
   
   If you're ready to take your savings goals to the next level, consider investing your money. It's a good way to grow your money and maximize your savings.  There are different ways to invest but, if this is your first time investing, it's best to start with a tax-free savings account because the costs are low.  It's never too early to look towards the future!

5. Put your plan into action
   
   Saving for your goals doesn't have to be difficult. If you already save actively, then try out these methods to make the most of your budget and savings.