If you are an eager budget beaver like me then you’ll come at a point in your budgeting life where you will soon discover that the free or paid versions of organising your money just doesn’t quite cut the mustard. I have used many free and paid version apps that try to help me keep on top of my money, but there will always be some feature that I need which has been found lacking.
A reverse budget is the process whereby the budgeter flips how they handle their allocation of money from being expenses first to savings first. It is also commonly known as the pay-yourself-first approach. The Bible states in the book of Ecclesiastes that There is nothing new under the sun, and while this approach may seem appealing it does conjure up some concerns. Firstly, let’s understand the general process of budgeting before we explore the new reverse budget process.
Prior to my wife and I getting married together we had never seriously looked at getting health insurance before. We knew it was something important for us to consider now as we readied for marriage, because there was a strong possibility we were going to have children. So with a little foresight we both signed up for individual health plans with one of Australia’s largest private health insurers. I signed up thinking I was minimising my tax and paid for the lowest coverage possible, whereas my fiance took out the policy with kitchen sink.
The financial year cycle for Australians starts from the 1st July in the previous year and ends on 30th June in the current year. When reporting to the government your financial activities you will be using transactions that were incurred during that period of time. Nobody likes to pay tax yet for some we don’t know what we should be claiming for to help us legally minimise our tax. One popular method to help minimise your tax is to declare your work related travel expenses.