Budgeting
Living within a sensible budget will help
ensure you enjoy a happy and secure financial future.
Our budget calculator will help you
calculate exactly what you can spend and how much you can save. But
before you try it out we recommend reading our four steps to
budgeting success.
1. Plan for your future
You need to build a complete picture of your financial situation
before you can plan for the future. It is important to be realistic
and set achievable goals.
2. Take an inventory
List all your sources of income, including your net pay, any
interest or dividends on savings and investments and social
benefits.
Next, list all your expenses. While rent, mortgage or loans
tends to be fixed you do have some control over more flexible
expenses such as food, clothes and entertainment.
If you have any loans, look into how much you’re paying, and
whether you’re getting the best deal possible. You should also add
a sum to cover unexpected expenses such as repairs to your car or
your boiler breaking down.
3. Remember to save
Regular saving is one of the keys to financial well being. We
all have financial ambitions, such as buying the car or house of
our dreams, but we also need to be prepared for life’s emergencies
– and have a little extra put aside for holidays.
4. Balance your budget
Subtract your expenses from your income. If there isn’t much
money left at the end of the month, then it is time to adjust your
spending. And importantly – don’t borrow more than you can afford
to repay.