It might sound like an obvious first step, but you’d be surprised just how many people don’t fully know what is coming out of their bank account and when.
Don’t worry, you don’t need to be a whiz on MS Excel or have a degree in accounting to put together a simple budget. Start by listing all the things you need to pay for every month – this includes things such as your mortgage payment or rent, cost of utilities such as gas or electricity, as well as groceries. Don’t forget to include any credit card or loan payments as well as other standing order and direct debits.
In fact, there are a number of great smartphone apps that can help you manage your budget.
Above all, be realistic and honest about everything you owe and your outgoings.
Once you have a list of all your outgoings you can see how things stack up against your wages. Do you have enough to cover all your expenditures with cash left to spare for the unexpected or are you spending more than you earn?
See where you can make some savings or cancel services that you may not be using, such as streaming TV services or gym memberships.
Finally, once you’ve set your budget, make sure you stick to it. Tracking your progress from month to month can help tremendously with maintaining your motivation.