Get your budget out of the red

IF the electricity bill's arrival causes fiscal stress, you need to learn the essential art of budgeting, according to The Wesley Mission's respected financial counselling service.

IF the electricity bill's arrival causes fiscal stress, you need to learn the essential art of budgeting, according to The Wesley Mission, one of the country's leading financial counselling providers.

Its latest survey shows one-in-four financially stressed clients can't pay their utility bills on time and one-in-eight people spend beyond their means.

Last year, Wesley Mission helped about 7000 people cope with financial strife and had to turn away 2500.

But by launching an online budgeting website, Wesley Mission hopes to help more people cope financially.

"It's a great tool for people who want to start the new financial year with a fresh approach to their finances, who need advice if they are in over their heads, or who have some major decisions to make following a retrenchment," said Wesley Mission representative Graeme Cole.

If a budget doesn't work out on paper, it won't work in real life.

"It often starts with the electricity bill - it's the beginning of the downfall," said Wesley financial counsellor Sandra Bourke. "We don't save for these things any more so we put it on the credit card."

The Melbourne Institute's recently released Household and Labour Dynamics in Australia survey found the most common financial problem was the inability to pay utility bills on time.

Twelve per cent of the 7000 people surveyed fell into this category.

"Too many just look at the immediate bills, the rent, petrol in the car for this week, and then don't plan for the bills that are coming and this is where budgeting is critical," Ms Bourke said.

The first thing she does for a client is work out on paper what money is coming in and what's going out, and most are shocked.

"They are spending more than they are bringing in and credit cards allow them to (overspend)," Ms Bourke said.

"A budget is essential because once you see it all on paper you can start to find solutions."

Many of us spend exactly what we earn, which leaves no buffer.

The online budget tool is at http://www.wesleymission.org .au/News/FinStress - "It's easy to fill out and the information is private," Ms Bourke said.