Whether in debt or not, we should all learn to budget. For some of us budgeting will come naturally, but for others it can be more difficult. Therefore we have put together a guide to show you how to prepare a budget:
- Gather all information together to calculate your income.
- Gather all information together to calculate your current expenditure.
- Split your expenditure into two categories – fixed and variable. Fixed will consist of your mortgage or rent, council tax, utility bills and insurances amongst other things. Variable will consist of shopping, fuel, public transport, mobile phones and leisure outings amongst other things.
- Look at your variable expenditure and see where you can make instant cut backs – change your supermarket, download apps to make free phone calls and send free text messages, use coupons and vouchers to reduce spending on going out and walk or bike instead of using your car.
- For your fixed expenses look at ones that can be changed such as insurances when they are up for renewal and utility bills and see where you can save money.
- Set yourself a weekly spend limit and stick to it. Using cash instead of cards will usually help with this.
- Review your budget every few months to make sure it is still affordable and that you are sticking to it.
This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.
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