Are You All Budgeted Out Yet?
So by now I’m sure you’ve heard more than enough about the federal budget.No matter what any government puts forward for a budget plan we know others, especially the opposition, are going to pick fault with it.
As far as a budget is concerned no one ever gets to create a budget that pleases everyone because a budget is always a compromise. No matter how much money there is to be allocated there will always be more needs, wants or desires to be filled than that money can be stretched to cover so clearly not everyone will be happy no matter what is presented!
We also need to be very aware that our society thinks that throwing money at a problem will solve it and that is not always correct. A great example is our education budget. Australia spends heaps on education, yet there are other countries where they spend much less yet are getting much better educational outcomes.
Money is not always the answer!
In previous years I have never made a comment about any particular part of the federal budget but today I will make one comment. I heard someone going on about how the new tax on bank liabilities is going to hurt everyone. I wonder if that person has forgotten the GFC? At the time the Federal Government announced they would guarantee funds in the Big 4 banks. As a result there was a huge migration of customers away from the smaller banks to the Big 4.
They were not complaining about that massive helping hand back then so hopefully they will remember that favour when considering their response now!
So, for Mum’s and Dad’s at home, my 2017 budget tip is this…
I can say without a shadow of doubt that while last night’s budget can or will have some impact on their financial future, their own home budget decisions are more important and their ability to solve problems and have a great life without the need to throw money at everything they do will have 100 times more impact on their financial outcomes.
You can go to the park and throw a ball or a Frisbee for free and in the process have a great time interacting as a family. You could also pay heaps on an outing to the movies and even though that may have been enjoyed by all there was hardly any family interaction at all!
I’m not knocking going to the movies, I am just making the point that you don’t have to spend money to have a great outcome!
Before every spending decision you make, think about what else you could do with the money and ask is there a better option!
$1 not spent has a million possibilities but once spent has only 1 outcome.
That’s all for now.
Have a great day!