If you have trouble saving money, you are not alone. Budgeting and saving for your retirement is like keeping to a strict diet or exercise regime. We know we should do it, but we always find a reason to put it off. The secret to financial security is not a "get rich quick" scheme, and it is not particularly exciting, but it does work. It is all about budgeting and establishing a regular savings plan.

Becoming financially secure doesn't just happen. It is up to you to make it happening using:

• A budget: takes into account what you earn and where you spend it

• A savings and investment plan: deciding how much you need to put away and where to invest it;

• Discipline: adding to your savings regularly; and

• Patience: building your wealth takes time!

Managing a budget

The best tool for finding extra money is by using a budget planner. Whether you make thousands of dollars a year or hundreds of thousands of dollars a year, budgeting is the first and most important step you can take towards putting your money to work for you instead of being controlled by it and forever falling short of your financial goals. You can use the budget calculator to work out your income and expenses and what you can cut down on.

We strongly suggest that you review your budget every year or whenever you experience a significant change to your income or expenses. For example, when you get a pay-rise or a new job, sell your car, extend your family or buy a house.

As you become more familiar with budgeting, you may wish to add a percentage to your cost of living to cover a price increase in products and services and inflation. Roughly speaking inflation is expected to increase costs by about 3-4% per year, or $3 to $4 dollars for every $100.

Below are some budgeting and savings tips to help you achieve your short and long term goals:

Use a budget planner

Our easy to use budget planner will outline your income and where you spend your money. You can then decide on what areas you can cut down on and save.

Set realistic goals

Define your savings goals, when you want to reach your target and how much you will need to put away to get there.

Make your budget flexible

Unexpected bills or the occasional night out can quickly ruin a rigid budget and you will find it easier to stick to a budget that has some flexibility and still allows you to enjoy life.

Avoid impulse buying

Before you buy something, ask yourself if you really need it.

Set up a separate savings account

Set up a separate savings account that you use only to contribute regular savings into. You can also arrange to have part of your salary credited into this savings account after every payday.

Reward yourself

Don't forget to celebrate your savings success when you reach your milestones.

To learn more about managing a budget, please speak to one of our financial planners at Intellichoice by calling 1300 55 10 45. Please use the budgeting calculator to gain a better understanding on where you can cut down on unnecessary expenses.