The Season of Budget Blues is Coming

The Season of Budget Blues is Coming

As the weather warms up and Christmas looms large on the horizon Suncorp Bank is encouraging Queenslanders to prepare their budgets for the season of unexpected expenses.

Suncorp General Manager of Banking Terry Wasmund said the months before Christmas are a testing time for even the best of budgeters.

"Unplanned bills or emergency purchases on top of Christmas shopping and end of year celebrations can break an already stretched budget if you don't have contingencies in place,"

Mr Wasmund said.

A recent Suncorp Bank survey of 4000 customers found 23% of people throughout the year forgot to budget for medical expenses while 18% failed to put money aside for increases in council rates and government charges.

The purchase of additional clothing was the third most likely unexpected expense (13%) and

last minute holidays came in fourth place (12%).

Mr Wasmund said a number of strategies could be employed to ensure a smooth financial ride through the next few months.

"The simplest way to avoid a budget blowout is to set up an emergency fund. Deposit a portion of your income into the fund every pay day and you'll have an automatic head start when it comes to paying off any financial surprise," he said.

"Previous generations may have stashed emergency money in piggy banks or carefully labelled jam jars but modern day bank accounts such as the Suncorp Everyday Options account provide a much simpler alternative.

"They allow you to link your spending account to a series of high interest sub-accounts which you can then name as you wish.

"Having one account for unplanned medical expenses, another for unexpected household

expenses and a third for entertainment and parties can help you keep track of exactly what's

what.

"As with any form of saving remember it's ok to start small. $100 saved for unexpected expenses is better than nothing at all. If you set your target too high you're less likely to put any money aside at all."

Suncorp is Australia's fifth largest bank and second largest domestic general insurance group,

with over 16,000 staff. Suncorp has representation in 450 offices, branches and agencies throughout Australia and New Zealand.

23 September 2009