26 Jun

Written by Shem on June 26, 2018

Sometimes the idea of budgeting can seem incredibly daunting from the start and so many of us stumble before we have begun. We have decided to simplify the idea of a budget, so you can enjoy pain free saving with a tool you can use!

 

 

What’s the Point of a Budget?

If you find yourself spending more than what is coming into your bank account and your debt is sitting pretty in the red, then you are overspending. With a real budget planner, you can assess exactly what you are using your cash on to try and close the deficit at the end of each month. Once you can see your outgoings you can then prioritise your finances and hopefully stick to it.

What Makes this Budgeting Method a Winning Idea?

Some generic budgets are far too hazy in terms of what is a typical month. They do not take into account seasonal periods like Christmas where spending habits would wildly differ against a casual June. Also, categories like ‘home’ or ‘motoring’ can be too broad so we have broken it down into sub categories, so you can note down the smaller expenditures within the main headings.

Before you Begin

* Take a look at your payslip to obtain exactly how much you are earning.

* Grab your utilities bills whether paper, online or through your bank statements. See how much is being spent there for the last 3 months to get an overview average.

* Gather up food shopping receipts from the last 3 months, add them and then divide by 3 to find out your average monthly shop.

How to Reduce an Overspend

* Cut less obvious bills like groceries and daily coffees from a fancy café! See how you can save with promotional codes, special offers and stockpiling. You can also sell unwanted items online or by car boot sales.

* Ask yourself whether you really need something. And if so, then figure out if you can do it cheaply.

* Think about what you can actually afford rather than what is a cheaper option.

Top Tip: Don’t just rely on what your bank account says. You have to factor in direct debits which are yet to leave your account. If you are already in your overdraft, then you are already spending above and beyond your means.
Budget with honesty. You may feel anxious about the end result, but it is that result what will help you get on track with your finances. Answer each section with truth and remember that it is always best to estimate larger sums of money rather than smaller, so you have a buffer.

Are your finances in serious trouble?

If you feel like your finances are at crisis point, then you need to seek help from those in the know about debt. For example, Citizens Advice Bureau or National Debtline.

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