New year, new budget.

The start of a new year is an ideal time to re-evaluate how you spend money and how much you may be able to save in the year to come.

The trouble is, where do you start? It can be a daunting task working out a budget for an entire year, but by keeping a few simple things in mind, there's no reason why you can't come up with a financial plan that will help you meet, or exceed, your goals.

Make sure you understand exactly how much money you'll have to work with each month. Without this, it's difficult to accurately predict how much you'll be able to save. Start your budget by working out your total monthly income (after tax), while keeping in mind any additional factors that may prevent money from making its way to your bank account - such as direct superannuation payments.

Once you’ve worked out how much you’ll have coming in you’ll need to work out what’s going out. This should include everything from essentials like rent, power and water all the way through to monthly repayments on any debt you may have accrued over the years. Don’t forget to include subscription costs such as Netflix or Spotify!

A common mistake that people make when generating a budget is forgetting to take one-off costs into account - such as your annual car service. These are no less important, and by including them in your budget it's easier to arrive at a more achievable figure for how much you can save over a year. If you're worried about forgetting one of these necessary payments, it's a good idea to include an emergency buffer in your budget, just in case.