Taking the time to create a budget can help you save £1,000s a year and keep on top of bills. By working out a budget, it can mean you are less likely to end up in debt or caught out by unexpected costs or money emergencies. This post will show you how to create your own personal budget, and how to keep up with it.
- Work out your outgoings (household bills, living costs, travel costs, leisure etc). The best way to do this is to look at your bank statements and work out an average amount for each category (don’t estimate it as this won’t work!)
- Work out your income. This includes extra income you make from surveys, a second job or hobbies.
- Cut back your budget. If you are spending more than you have coming in, you can solve this by cutting unnecessary spending such as buying lunch out or cancelling the gym membership you never use. You can also save hundreds of pounds on your bills by switching providers to a cheaper alternative.
- Keep on top of your bank balance. Alongside sticking to your budget, it is useful to check your bank every day so you are aware of any unexpected money going in or coming out your bank.
- Set a savings goal. This will keep you motivated to keep up with your budget and will also help you to build an emergency fund which will help you pay for unexpected emergencies.
I hope this post has helped to set you on your way to creating a budget!
Thanks for reading, tweet me @BritOnABudget1 any of your best budgeting tips!