From shoes to handbags, holidays to cars, there’s always something for us to spend our money on.
If you’re anything like us, trying to save for a rainy day is pretty impossible, so we decided to take control and begin to budget our money every month.
Here’s some handy hints to help you turn those dreams for the future into a reality.
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Write it down
It might seem obvious, but the most basic starting point for any budget is to list out exactly what you have coming in and going out of your account each month, or preferably, each week.
Knowing how much of your wages actually walks straight back out of your pocket in bills is a must before any budgeting can begin and from there, you can get a grasp on where savings can be made.
Seven days
The best way to start a budget, especially if you have never done one before, is to break it down week by week and even to a day by day basis if possible.
If you have something coming up such as a hen party, a birthday or a wedding, you need to factor this into your budget. There’s no point sticking to your set figure for the week when there’s such a big expense coming up.
Get real
It’s important to be realistic when you’re budgeting. Look at it honestly and figure out how much you actually spend on a night out, how much is really going out of your pocket for that cup of coffee or bag of Minstrels every day and you’ll be surprised at where you can make savings.
Know your budget
If you know you can’t afford to pop into Penneys and buy that new top (and nail varnish and shoes) then be firm with yourself. Don’t do it. The credit card bills will just keep rising and you’ll be back to square one before you know it.
Clear the debt
There’s no point saving if you have an enormous pile of debt left unpaid. While it’s great to save and have loads put aside, if you have a bit of extra cash at the end of the week or month, divide it between paying off debt and saving – or alternate it week-to-week.
Finally…
Be sure you know your limits. Once you have established exactly what your income is, add it all up together.
Next, get your expenses and add all of them together.
Then, subtract your expenses from your income and you will see how much – if anything at all – you are left with at the end of the week/month.
Be warned, it may be a bit of a shock.
