Financial Goals
- Set out what you hope to achieve before planning your budget. Do you want to reduce your debt, save for something special?
- Set your goals with time frames for example, six months, a year, five years, etc.
Create Your Budget
- Work out how you are going to have your budget – will you use a book, a folder or a spreadsheet?
- A good way to start is to begin with 12 columns, one for each month.
- Your row’s will be used for expenses
- Divide your income and expenses into categories.
Track Your Expenses
- List your static expenses (expenses that cost the same each month) for example, rent, mortgage, car repayments, etc
- List your variable expenses (expenses that differ from month to month), for example, groceries, utilities, etc
- Don’t forget to go through your last twelve months of bills for any unexpected expenses to account for such as medical bills, fines, etc.
- Go through your bills and see where you can cut down
Budgeting Tips
- Try to avoid impulse spending. If you see something that you really want – go away and think about it and check to see that you can afford it first. It’s all about control
- Be financially organised and pay attention to exactly where your money goes
- Try to stick to your planned budget as best you can
- Don’t deprive yourself completely
Debt Tips
- List all of the debt that you currently owe and also make a note of the interest rate charged to each.
- Pay as much as you can on the highest interest rate
- Try to put at least 10% of your income into your savings
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