Budgeting lies at the foundation of every financial plan. It doesn’t matter if you’re living payday to payday, or earning six-figures a year. You need to know where your money is going if you want to maintain a handle on your finances. So, make a budget as soon as possible.
The following content will help you take the first steps in understanding how much you currently spend so that you can identify possible opportunities to reduce your outgoings and improve your relationship with money.
It can feel overwhelming to be faced with a budget that needs to be reduced, particularly if you feel you’ve already made compromises to your lifestyle to save money.
But, you might be surprised at just what you can save with a little extra help.
Organise your finances
Perhaps the best way of organising your finances is to have a very clear idea of what income is coming into your household each month, as well as what expenditure is being paid out each month.
If you want to do this yourself, you can put together a document that highlights all the money coming in and going out each month. This is called an income and expenditure document.
Alternatively, the Money Advice Service has created a simple to use online budget planner. Before you start, have as much information as you can on hand, such as bank statements and bills. The more up to date your details are, the more accurate your results will be.
How to use the online budget planner
Other resources which you may find helpful: