Style Money Guides
Balancing Act
If you're like the majority of people, then money will seem to run through your fingers like water. So if you want to save a little, change the way you spend your cash or simply find out exactly how you fritter your readies away, then take control and create a budget.
Think Ahead
First up, decide what you actually want to achieve. Do you simply want to save money or do you want to economise in some areas and divert those savings to something big like a holiday or a mortgage? Next, spend a few weeks keeping tabs on the amounts you spend, on nights out or on food and shopping. This will help when it comes to creating your budget. Finally, be realistic - don't set yourself targets that you simply can't meet or try to make savings on things that you can't economise on, like rent or heating.
Basics
A budget is simply a list of income - money you earn or are given - balanced against all your outgoings - shopping, bills, haircuts etc. To create a budget, sit down with your account details and work out exactly how much money comes in each month and list it. Then in a separate column, list your outgoings. This tends to be a bit more complicated so divide it categories to make it simpler (although some might need to be estimates at first). These will probably include mortgage or rent, insurance, phone bills, water and so on. Don't forget to include things like petrol and car insurance, childcare or credit and store cards too.
With a complete list, perhaps on a computer spreadsheet or just on a sheet of paper, total up the two columns and see how you may be able to control it. There's an example of a monthly budget planner on the government's Career Development Loans website. If you're a student, check out the budgeting tool on the Department for Education and Skills website AimHigher.
Once you've written up your budget, you need to check if the figures are accurate so monitor your spending for a few weeks and readjust. Try to keep a record of everything you spend, including bank and credit card statements. This helps identify regular and occasional spending patterns.
First up, decide what you actually want to achieve. Do you simply want to save money or do you want to economise in some areas and divert those savings to something big like a holiday or a mortgage? Next, spend a few weeks keeping tabs on the amounts you spend, on nights out or on food and shopping. This will help when it comes to creating your budget. Finally, be realistic - don't set yourself targets that you simply can't meet or try to make savings on things that you can't economise on, like rent or heating.
Basics
A budget is simply a list of income - money you earn or are given - balanced against all your outgoings - shopping, bills, haircuts etc. To create a budget, sit down with your account details and work out exactly how much money comes in each month and list it. Then in a separate column, list your outgoings. This tends to be a bit more complicated so divide it categories to make it simpler (although some might need to be estimates at first). These will probably include mortgage or rent, insurance, phone bills, water and so on. Don't forget to include things like petrol and car insurance, childcare or credit and store cards too.
With a complete list, perhaps on a computer spreadsheet or just on a sheet of paper, total up the two columns and see how you may be able to control it. There's an example of a monthly budget planner on the government's Career Development Loans website. If you're a student, check out the budgeting tool on the Department for Education and Skills website AimHigher.
Once you've written up your budget, you need to check if the figures are accurate so monitor your spending for a few weeks and readjust. Try to keep a record of everything you spend, including bank and credit card statements. This helps identify regular and occasional spending patterns.
