How to Stay on Top of Your NDIS Budget and Avoid Costly Mistakes
Managing your NDIS funding is crucial to ensuring you receive the full benefit of your plan. Without a proper budget, it's easy to overspend, underutilise, or miss important errors in your invoices.
By taking control of your finances and monitoring your spending closely, you can avoid common pitfalls and make the most of your NDIS plan. Here are some essential tips to help you stay on top of your NDIS budget:
1. Track Your Spending
A great starting point is regularly tracking your NDIS spending. You can do this using the NDIS myplace portal (for NDIA managed participants or self-managed NDIS Participants) or by accessing your Plan Management portal (for plan managed participants). These portals list your NDIS expenses, and some plan management companies offer excellent budgeting tools specifically designed for NDIS participants as well as apps for easy access on your phone/tablet. Keeping an eye on how much you’ve spent and how much funding remains helps you plan ahead and prevent overspending. If you don’t have access to your online plan management portal or the NDIS myplace portal, call your plan management company and request it, or contact NDIS for a linking code to connect your NDIS to your MyGov account, just like Medicare or Centrelink.
2. Review Your Invoices
One of the most overlooked aspects of managing NDIS funding is reviewing invoices. If you're not regularly checking them, you could be paying for fraudulent charges or simple mistakes made by service providers. Carefully reviewing your invoices on a weekly or fortnightly basis ensures you only pay for services you’ve actually received, safeguarding your budget and avoiding unwanted surprises. Any longer than this, and you may forget the exact dates or hours of services provided. Catching mistakes early makes it easier to request corrections promptly.
3. Set Spending Limits
A great way to stay on top of your budget is by creating a budget for each funding category, such as Capacity Building activities, for example therapies, Capital Supports such as mid or high cost Assistive Technology equipment, or Core supports for consumables, low-cost Assistive Technology items and support workers for in home and community access and other services such as cleaning/gardening services. To determine whether you are on track with your budget, seek quotes from each service provider for your current usage until the end of your NDIS plan. This will help you forecast whether you are heading for an underspend or overspend, allowing you to tweak your spending accordingly. Setting clear spending limits for each category helps you avoid overspending in one area while ensuring you have enough funds left for other crucial services.
4. Review Monthly
To make sure you're staying on track, schedule monthly check-ins to review your NDIS spending. Take the time to assess how much you’ve spent, if there are any adjustments you need to make, and whether you’re on track to stay within your budget. Regular reviews prevent issues from piling up and allow you to make small changes before they become bigger problems.
5. Work with a Support Coordinator or NDIS Coach
If managing your NDIS budget feels overwhelming, consider working with a support coordinator. A good coordinator can help you navigate your plan, monitor spending, and ensure you're maximising your funding efficiently. They can also provide advice on the best ways to allocate your funds based on your personal goals and needs.
6. Plan for the Unexpected
Life is unpredictable, and so are your support needs. By setting aside a portion of your budget for unexpected expenses, you’ll avoid the panic of running out of funds when something urgent comes up. Whether it’s an additional therapy session, a new piece of equipment, or unforeseen home and community supports, having a little flexibility in your budget is always a good idea.
In Summary
By regularly tracking your spending, setting clear limits for each category, reviewing your invoices for errors, and working with a support coordinator or NDIS coach, you can ensure that your NDIS funding is used effectively. Managing your budget not only prevents overspending or underutilisation but also helps you spot fraudulent invoices or service provider mistakes, giving you peace of mind that your funds are being used properly. Take control of your NDIS plan by creating a budget that works for you, so you can focus on what matters most – achieving your goals and living your best life.