How 2 live within your budget.

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With the current financial climate there has never been a better time to get on top of your spending and to be sure you are not spending more than you've got.

Here are a few practical tips to help you live within your budget...

List all your expenses, savings and income from the past 12 months. Use bank statements and credit card statements to do this. Leave no stone unturned!

Do the sums

Now, based on this- what expense do you expect to have over the next year? You can work out per month and multiply this figure by 12, or by three months and multiply by four to get your years forecast. Be realistic- if your old statements show you have been spending around £50 every couple of months on updating your wardrobe don’t pretend it’s not part of your spending habits- include it in your budget.
Enter this information into a spread sheet or online budget sheet, or you can print off a budget sheet and use the traditional paper and pen to accurately map out your income and to predict what you are likely spend.

Now what?

So, if you’re predicted spending is less than your income- you are on track! If you haven’t already- set aside a percentage of your income for savings. It’s always good to be prepared for unexpected bills and future big spends.
If you are spending more than you have coming in you will need to cut back. This can be less painful than it sounds. Where can you cut back? Are there any items you can buy cheaper? Are there any things you don’t necessarily need? Are you being charged for things you can avoid? Can you transfer your credit card interest to a lower rate card or a promotional 0% rate?

Keep track

Now you’ve done all this- keep track. Record your actual spending and income each month and keep checking where you can cut back or maybe even afford to spend a bit more! ( Don’t forget credit cards, overdrafts, or any borrowed cash don’t count as your actual available money).
It’s a bit of extra effort, but it’s not nearly as boring or painful as worrying about money and not knowing what you’ve got.

Rob Parsons’ book the Money Secret is a great book to help you get in control. (If you can’t afford to buy it let us know and we’ll make sure you get a copy.)

If you are worried about your finances- don’t struggle alone. Check out our useful links for further places to go…

Money Secret
Useful links

Written by Emma Coffey. Posted on 16th April.

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