How to Budget
How to Budget
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Trying to save? Need to take control of your spending?
Budgets are a good starting point for anyone wishing to manage their finances or begin saving money.
They can be bespoke to you, your needs, your lifestyle and your financial goals.
You may find budgeting tricky at first as sticking to a budget can prove to be difficult, especially if you're setting yourself tight goals. However, by creating a budget you will give yourself a greater oversight as to where your money is going, and how much you can save.
Please find below the budget planner and budget planner guidance.
When opening the google form, go to file and select make a copy. This will make the spreadsheet yours and keep it personal to you!
You may find budgeting difficult at first and finding ways to cut back on your favorite things!
There are a number of ways you can save money by cutting back, such as taking a packed lunch to work instead of buying food there or finding a cheaper brand. These hints and tips are available on the how to start saving page.
You could even set aside 10% or 20% of your income to go directly to your savings before you start paying bills. This way, you can spend the left over value after bills knowing you still have savings. You don't have an obligation to spend all your money either, so if you treat yourself and find you still have some money to spend, you can add this to your savings as well!
Here are a few tips and tricks to keep on track of your budget!
Here are a few tips and tricks to keep on track of your budget!
1. Budget to Zero before the month begins!
This does not mean you plan to spend all your money but you plan to give your money a purpose before you receive it. For instance, you mark your income for the essentials such as bills, child payments, rent etc... and then map your finance for savings and spending. E.g say you receive £1,000. £500 may go to your essentials, then you would plan what you intend to do with your remaining £500 so it is already spoken for. This way you are less likely to spend it on something you do not need or will want in 1 months time.
2. Do your budget with a partner
If you have a partner, it may be worth sitting down and discussing your finances together, especially if you share bank accounts. This way you can agree on a budget together and motivate one another to stick to it. If you are single, you could do this with a friend or someone close to help you stick to your goals.
3. No month will ever be the same
No month will ever be the same and some months you may have budget for certain things. For instance, leaving extra room in your budget for Christmas or if you're a parent, you may have to budget for back-to-school supplies. All you need to do is adjust your budget each month for the changes which may mean allocating less money for evenings out to ensure you have enough cash to support your additional payments. The A Better You budget planner is free for you to download and covers a variety of potential spending areas with additional rows for niche spending zones in order to meet your needs.
4. Start with the most important categories first.
Leave your nail treatments, hair appointments or that beer at your local till last and focus on the things you NEED day to day. This is your home, your food, utilities, transport to get to work and any outstanding loans. Once these have been accounted for, you can begin to fill the rest of your categories in your budget.
5. Schedule a time to budget!
This can be monthly or weekly for review to keep you on track with your budget. If you don't schedule time, you may forget to budget and it will need reviewing regular to meet changes. You may review your budget weekly by planning out what you're going to spend each week or inputting what you have spent. This way you will be able to keep up without making it a mammoth task at the end of each month. You may even notice a need to trim your budget temporarily to be reviewed and changed weekly or monthly.
6. Unexpected expenses
They're a pain right! They could ruin your budget and you may find yourself short. Create an emergency fund as part of your budget and contribute an amount, no matter how small to that section each month or week. This isn't like your savings section. This money can be used for emergencies such as your car breaking down or a faulty oven. That way you won't have to worry about where you are going to find the cash to pay for these things as it will waiting in your emergency fund.
7. Have a goal
Having a goal can motivate your savings and keep you focused on your budget. This could be paying off a loan, paying off your mortgage or maybe even saving for a new car. Whenever you feel yourself struggling, remind yourself of your goal and why you're making these sacrifices. Know it will pay off!
8. Give yourself some grace!
It can take a while to get into the habit of budgeting and sticking to it. It will never be perfect the first few times and you may struggle at first but once you get into the swing of things, you'll soon see your bank account glistening!
Struggling to save?
Visit our Start Saving Page using the navigation buttons above
Struggling with loans?
Visit our Managing Debts page using the navigation buttons above
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