Does a budget matter
It makes all the difference
A novated lease budget that's 'about' right, means that once its set up you don't notice it.
The monthly rental... enough money. Filling up with fuel... enough money.
You don't want too much money, after all its your money we're holding onto, just waiting for the next expense to pay on you behalf
But the budget needs to build up 'enough money' for the annual expenses like registration and Insurance as well.
And when the tyres come due, there needs to be 'enough money'.
Fairly good budget
Red columns shows the spending for the month
Blue columns shows the running balance
Even when the bigger annual bills came in and tyres, there's still enough in the budget for the insurance renewal coming due in 2 months.
Not good budget
Red columns shows the spending for the month
Blue columns shows the running balance
This budget is not allowing for the increase in monthly expenses and is running short, need to check with the client about changing the budget to suit.
Where to next
I'm ready to do the numbers