Budget Tips | Single Parent Support Australia

Budget Tips

Things to remember when hiring a tradesperson

Budgeting experiences of Madeleine � sole parent �extraordinaire�.

I will probably tell you stuff you already know, and I acknowledge that it is hard to manage on the pension, but with careful planning it can be done. I do have to get a food voucher occasionally, when I have, say, a larger water bill than expected, and I'm very grateful for the support of agencies like SPARK Resource Centre Inc in S.A. and the Salvation Army.

I have been managing to live, albeit way below the standard I would like to, on the pension for a number of years now. Four years ago I wasn't managing well. So I made an appointment to see a financial counsellor and continued to see her on a regular basis for nearly six months. In those six months I established the good financial habits, such as setting a budget and sticking to it, keeping a record of everything I spend over a month to see where the money is going and establishing a bills account. I have also been very careful to rebuild and maintain a good credit record.

As well as careful financial planning, I grow fruit and vegetables in my garden. As it is a small garden, I have a miniature peach tree, which doesn't grow very high and is a prolific fruiter. I also have a columnar apple tree, doesn't branch out, so takes up less space. I have chickens which not only supply me and my friends with fresh eggs, they weed for me and supply me with hours of entertainment.

I maintained a car for a number of years on a pension and that was hard. Now
I always buy �multi-trips� transport tickets at the beginning of the fortnight and that saves me a lot of money.

Financial counselling services are available from most agencies such as Salvation Army, Saint Vincent De Paul, Anglicare etc. The Child Support Agency also have a booklet on better budgeting practices.I have been managing to live, albeit way below the standard I would like to, on the pension for a number of years now.

Financial Counselling

Four years ago I wasn't managing well. So I made an appointment to see a financial counsellor and continued to see her on a regular basis for nearly six months. In those six months I established the good financial habits, such as setting a budget and sticking to it, keeping a record of everything I spend over a month to see where the money is going and establishing a bills account. I have also been very careful to rebuild and maintain a good credit record.

Budgeting

Every fortnight I write in a small notebook, which bills are due and how much I need to withdraw to cover them. This notebook serves as the basis for my budget.
I allocate a portion of my budget for lay-bys, which is a minimum of $10 a fortnight. Things I get on lay-by are those items that I don�t necessarily need right away. For example I got a very good pair of walking shoes from K-Mart on lay-by. They were a lot more than what I usually spend on shoes, but they were worth waiting for.

Home Grown Philosophy

As well as careful financial planning, I grow fruit and vegetables in my garden. As it is a small garden, I have a miniature peach tree, which doesn't grow very high and is a prolific fruiter. I also have a columnar apple tree, it doesn't branch out, so takes up less space. I have chickens that not only supply my friends and I with fresh eggs; they weed for me and supply me with hours of entertainment. Mulch and compost sources are usually freely available from your local lawnmower service. They will deliver free of charge and save themselves dollars on dumping fees.

Access to Free Entertainment

I make regular use of at least three libraries, all accessible by bus. Not only do I keep with new release books, I borrow cds and videos. Currently you can borrow new release videos and dvds from the Adelaide library. I�m sure these services are available through other libraries as well. I often browse through bookshops and note down titles, then check to see if the library has them. If they don�t you can put in a request for the library to purchase it. The libraries also have magazines and cd roms for computers. Belonging to a library can mean you save a lot of money on video rental. You might have to wait a while, but you get the video for a week to two weeks in some libraries.

Feeding the Masses

My adolescent daughter often brings friends home and I find I have a houseful of teenagers to feed. I make sure I always have a stock of sausages in the freezer and a cheap loaf of bread. Plus once a week, I cook up a big pot of bolognaise sauce and the kids then cook their own pasta. There is a rule in my house though, that if you eat more than one meal a week in my house, you have to provide practical (housework or food) or financial help.

Transport

I always buy multi-trips at the beginning of the fortnight and that saves me a lot of money. I maintained a car for a number of years on a pension and that was hard.

Bill negotiation and juggling

If my electricity or telephone bill (an std bar on the phone saves heaps of money) is larger than I expected, I negotiate with the companies, immediately I get the bill. I make sure I have a plan that suits me ready to present to the person I�m talking to. I�m very good at juggling, because as you know the bills always seem to arrive at the same time.

In search of the best price

The battery in my watch died this week, Monday morning to be precise. I�m carrying it around in my pocket and getting quotes from all over the place, the cheapest so far is $9.75. But I know if I wait until Saturday, there is a place in Port Adelaide that will do it for $5 (this offer is only available on Saturdays). It�s worth remembering offers like that, because you never know when they might come in handy.

Conclusion

I'm probably telling you stuff you already know, and I acknowledge that it is hard to manage on the pension, but with careful planning it can be done. I do have to get a food voucher occasionally, when I have, say, a larger water bill than expected, and I'm very grateful for the support of agencies like SPARK Resource Centre Inc in S.A. and the Salvation Army.

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Utilities Handy Budgeting tips

Power

Sometimes power bills can get expensive. There are many things that you can do to keep the costs down; this brochure gives you some examples.

Reduce your use of hot water, take shorter showers.

Use cold water instead of warm water to wash your clothes.

Leave the heater off and put on another layer of clothes - heaters and air-conditioners use the most electricity of all appliances.

Also, increase temperatures on reverse cycle air-conditioners during summer and decrease during winter, as every degree lower or higher than the thermostat needs to be, increases heating/cooling costs by 10%.

Clean any obvious coils/filters on refrigerators and air-conditioners

Clean windows regularly to maintain a high level of natural light, reducing the amount of money spent on lighting.

Don't leave the fridge door open longer than necessary.

Reduce the temperature setting of your fridge and freezer to the lowest recommended temperature, around 40C is fine, anything lower than this is wasting power. Keep the rear coils clean and 10cm away from the wall this allows air to circulate around them and aid the cooling process.

If curtains are kept closed during the day it will reduce the heat conducted through the windows by half. If your curtains are not made of thick material, try attaching an old sheet to the curtains to add extra block out from the sun during summer.

Fans are cheap to install (in comparison to air-conditioners) and have lower running costs. Seal gaps around doors and windows.

Keep living room closed off from unheated/cooled rooms. Have shorter showers instead of baths

Fixing leaking hot water taps saves around $14 per quarter

Electric clothes dryers cost an extra $24 per quarter to run so hang the clothes out wherever possible.

Use energy 'star' ratings to help choose efficient electrical appliances1 1 star is the least efficient and 6 stars is the most.

The Energy Information Centre In your state provides free impartial advice on shading, insulation and air-conditioner systems to meet your needs.

Remember that any appliance that is not in good condition will cost more to run.

FOR OTHER STATES AND TERRITORIES CONTACT YOUR ELECTRICITY SUPPLIER

Telephone Discounts

It is possible for people to have a phone with which you can receive calls but cannot make them, except for 000 emergency calls and calls to family and friends who have the Homelink service. Telstra call this service "In Contact". If you do not already have a phone line it is a one off $50 charge. With this service, you can still talk to people on the phone without the added expense of a telephone bill.

make a note of the type of calls you usually make before deciding to change to another telephone company, and compare the cost of what you ~re paying now with what you will pay with the new one. Don't forget to consider the specials, which are often advertised in the daily paper or on television.

If you make calls to 1900 numbers remember that these will not necessarily show up on your normal telephone account as they are allocated to a company automatically and can be billed to you as a separate account. These are expensive calls and you should keep a record of the number you rang and the time spent on each call.

If you have problems with paying telephone bill, ring the company make arrangements to pay instalments. Do not wait until you about to be disconnected.

For more information about "In Contact", you can contact Telstra on 13 2200 as there are special conditions that apply to people wishing to use this service.

You can now shop around for cheaper telephone calls. Telstra and Optus both have discount rates for long distance and international calls, and some of the new telephone companies can also give you cheaper rates for local calls.

This information is provided by Lutheran community care through the Low Income Support Programme. This programme is funded by Family and Youth Services

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The Lets Scheme (link to Australian sites)

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Things to remember when hiring a tradesperson

Contracts are binding � you cannot break them unless there are exceptional circumstances

If possible obtain several quotes before you decide who can do the work.

Make sure you get a detailed written quotation for any repair, maintenance or construction work

Ensure that the person who does the work is licensed with the appropriate authority

Don�t be rushed or intimidated into making a decision � remember it is your choice and your money.

Don�t pay a deposit unless you are really sure you want the work carried out by that person. Remember - if you change your mind you are not automatically entitled to get your money back.

Make sure you know the total cost of any added fees and charges

Ensure that you get any promises including guarantees and warrantees in writing

You have a right to have all documents fully explained to you by the trades person - however it is your responsibility to read and understand all documents before you sign them.

You have a right to a receipt for goods and services you pay for � keep them along with any contracts and guarantee documents - fill out any guarantee slips and send them off soon after you buy.

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A Do-it-yourself used car checklist

If you are in the market for a second-hand car, have the one you choose thoroughly checked out before you sign anything, says the RAA. Naturally it would be expensive to have an RAA Inspection on every car you think you might like to buy, but you can do a basic but thorough check on a car to help you make up your �short list�. It will take a little time and effort but it is worth it. Check all these things for yourself � don�t be satisfied by what a salesperson may tell you about the car.

For a start, inspect the car in good light, preferably daylight. Check all body panels for rust or accident damage. Look for paint bubbles, paint that doesn�t match or panels that don�t appear to fit properly.

Check all of the tyres for tread, cracks, and uneven wear, which can indicate problems with the steering or suspension. And while you�re down there, look on the ground under the car for any signs of oil leaks. Don�t forget to have a look for brake fluid leaks from behind the wheels.

Check everywhere for rust: Under the carpets, the bottom of the doors, the sills, and under the mats in the boot. And while you�re in the boot check that the lid closes properly and that there is a spare tyre, a tool kit and a jack.

Make sure all the doors and windows open and close properly and that the locks are operating. Check that the seatbelts are in good condition, not frayed of faded, and that they are well anchored.

Under the bonnet you should look at the condition of the engine and the battery. If they are dirty it�s a sure sign the car has not been well maintained. Naturally, if the whole area is spotless having been recently cleaned you�ll have to dig a little deeper.

The coolant in the radiator should be clean and brightly coloured. Take out the dipstick and look at the state of the oil. Grey or milky oil indicates a serious problem. Don�t be fooled by lovely clean oil at the first dip; check the colour of the oil again after the engine has been running.

Start the engine, with the bonnet up, and listen to it. The sound should be even with no unusual noises. Check the exhaust smoke; blue smoke can signify serious problems.

Take the car for a drive on relatively quiet streets so you can put it through its paces. Try out the brakes a number of times. Make sure they feel firm and don�t pull to one side. Relax your grip on the steering and see if the car wanders off to one side. Listen for any unusual noises particularly when you drive over bumps. Check that the gears change easily.

Keep an eye on the dashboard lights for any indications of changes in things like oil pressure and charging. Then try out all the accessories and electrical devices like lights, radio, heater/air conditioner, windscreen wipers, lights, horn, electric windows and etc.

Look for the compliance plate and check that what is stamped there agrees with what is written on the registration papers. Check that the engine number corresponds as well.

If, after this initial D-I-Y inspection, the car makes it onto your �very short� list, arrange for an RAA or other independent Vehicle Inspection before you agree to buy. In fact, make it a condition that you will agree to purchase subject to an RAA Inspection that satisfies your confidence in the car.

For more handy hints and information, follow this link to the RAA website www.raa.net This information was supplied by the RAA of SA Inc.