Organise your finances
making a budget helps you to...
- Reduce stress, by planning and monitoring your spending habits
- Know whether or not you are in control of your finances
- Know how much you have coming in each week or month
- Save money
- Cut back on unnecessary spending
- Use your money to work towards your goals in life
Why do I need to budget?
It's easy to find yourself wondering where your money went. Putting a budget in writing can show how you're actually spending your money and what you can do to help control where it goes.
Budgeting is not difficult, although it may take some concentration and a but of work, you do not need to be a financial whizz or maths genius to do it!
The following tips will help:
- Be consistent and accurate - Making a budget involves keeping a regular check on what you are spending.
- Keep updated records of what you spend.
- Be honest - Don't try to skip cerain items, or underestimate your spending
6 steps towards creating a budget:
- Work out your income. Make sure you are taking your net income i.e. income after tax. The pro-forma example shows you the sort of headings your income could come fomr.
- List your regular commitments. This includes things like Council Tax, mortgage, rent, heating, insurance etc.
- Add up what you are spending on normal day to day living expenses. This includes things like shopping for food, clothes, transport, entertainment, and so on.
- Make sure that the income and the spending is for the same period. For example, if the income is a monthly figure, the spending should be a monthly figure as well.
- Record what you spend on occasional items - such as birthday and Christmas presents, repairs or decorations to your house or flat, holidays etc. These items are spend on irrgular occasions but it is helpful to put in an average monthly amount.
- Total your income and total your spending. If the spending is more than the income, it may mean that you need help with your finances.
It is important to review your budget monthly and adjust it as your income and expenses change.
If you need advice with your budget you can contact .