05 May 2020
Create your budget and keep track of it
Set yourself a realistic budget, this could be broken down into weeks or months depending on which works best for you. Look at different areas you might need to spend on such as food, travel, phone bills and entertainment. Allocate an amount that you think you would need for each of these areas. Once you have created your budget remember to keep track of the amount you are spending and what it is for. Some people find it helpful to use budgeting apps or spreadsheets to do this.
Do you need to cut back on any costs?
Take a look what you currently spend each month compared to your new budget. How does this add up? Write down everything you have spent in the last month, and If you currently spend more than your budget allows consider way in which you could cut back on your spending. You may be surprised what you spend your money on each month.
Spend your money wisely
Do you need that latte, that new outfit, or the latest game? You may be able to reduce your costs by thinking about and researching each purchase rather than impulse buying. Buying branded clothing or food can be significantly more expensive than buying unbranded products. Also, when all this is over remember charity shop shopping is a great way to still get those branded things but at a fraction of the cost!
What about unexpected costs?
Start an emergency fund and pop a little bit into it each month. When those unexpected costs crop up you will have something to help you pay them. Some banks allow you to set up little pots of money which can make this easier.
Revaluate your budget
If you find it really hard to stick to your budget this might be because you set yourself unrealistic goals. Look to see if you can move anything around. By checking in with your budget throughout the month you can see what parts you are spending more on and if this needs a rethink. Next month you could look at increasing the allowance you give yourself for that area and decreasing another area.
Speak to others
It may be useful for you to speak to friends or family to see if they have any budgeting tips. They may be able to show you ways to cut your costs down, or give you tips and tricks that have helped them. There are also websites out there to help people with budgeting such as Money Saving Expert.
CategoriesAdvice & Guidance