When Budgeting Less Is More

Money management is an art form, one that, some say, can only be learned through self-discipline. While that is true, we are still going to offer our two cents on clever and unique ways to budget. Once you have the knowledge at your disposal, you can then apply some self-discipline.

Are you putting those spare coins into your piggy bank? Have you got a convoluted spreadsheet and automatic payment system? However you budget, and however good you are at budgeting, there’s always new and unique ways that can be of use. What we’ve found is, the less structure you have around your budgeting process, the more likely you are to stick to it.

Stay on top of your spendings, and savings.

Continue reading to learn more about some money management techniques.

Automate everything

Making decisions is exhausting. For real – psychological research shows people make worse decisions when their willpower has been tested. It’s a phenomenon known as decision fatigue, and it could be undermining your savings goals.

The fix? Automation. Decide how much money you’re going to save, and set up a direct deposit on the day you get paid. That way, you don’t have to make any decisions or make any mental calculations. You’ll save without even thinking about it.

Use the 60-20-20 rule

This one might involve a little bit of maths, but stick with us: it’ll be a moment of effort with years of pay off.

If you’ve got no idea how much you should be saving or spending, this one helps by giving you a solid framework. 60 percent of your pay should go towards daily expenses – like rent, bills and groceries. 20 percent goes to savings. And 20 percent is for fun stuff – like nights out and new outfits and spontaneous road trips with your mates.

The genius of this budget hack is that you have a still have money to play with, so it doesn’t feel onerous.

Level up this hack by incorporating the one above: set up direct deposits so you keep our fun money separate from your savings and your everyday spending.

Set goals

This might not seem like a “hack” but its effectiveness has been proven: UK government research found people with a specific savings goal save faster and more effectively, putting aside an average of $1000 more over a year.

It doesn’t matter what the goal is – just that you have one. Or several! Perhaps you’ve got a long-term goal of saving for a house deposit, and a short-term goal of going to Bali next August. It doesn’t need to be an either/or thing.

Have an emergency fund

Perhaps the most boring of the hacks, but super important. Having a safety net of a few months’ living expenses will ensure you are taken care of should the worst happen – like your car breaking down, or losing your job.

Keeping this money separate from your day-to-day transaction account and savings accounts means an emergency won’t derail your budget. Don’t skip this one!

Get a bank account that makes it easy

Gee, if only there was a bank account that could help you automate your budget and work towards your savings goals… wait a second, there is!

The Westpac Life savings account allows you to do just that – you can set up to 6 goals and track your progress towards them via the Westpac App. You can save for several goals without the hassle of having more than one account – and you’ll earn a competitive 2.30% p.a. variable interest rate which includes bonus interest every month your balance grows.

Westpac Life is a flexible savings account that could help you stay on track to meet your savings goals. Open now in less than three minutes.

To open a Westpac Life account, you must be registered for Online Banking and hold a Westpac everyday account in the same name. Fees and charges may apply on the everyday account. Any recommendation made in this communication does not take your objectives, financial situation or needs into account. Read the terms and conditions at westpac.com.au before making a decision and consider whether the products are appropriate for you. © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.

This information is intended to be general in nature and should not be relied upon for personal financial use.

[Tweet “Less Is More When It Comes To Budgeting (NOT SAVING)”]

Remember, if you are experiencing financial difficulty, Cigno can be a source of assistance. We offer same-day loans to those in need, regardless of the situation you find yourself in. Got a bad credit rating? No problem. We have a quick and painless application process, as well as a high approval rate for all borrowers. Everyone needs a hand from time to time, and we are here to help you land on your feet. Apply for a same-day loan today!

Reach out to us today to get the same-day loan you need in your bank deposit as soon as this afternoon!

Read original source article here.

You can read more about same-day loans in our previous blog post: How a Cash Advance Can Help You After a Disaster

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat