Budgeting

For a happy and secure financial future, you need to live within a sensible budget. This page will help you balance your income and spending.

Budget calculator – this will help you calculate exactly what you can spend and how much you can save.

Before you try out this calculator, read 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.

Be realistic, and set achievable goals.

2. Take an inventory

List all your sources of income, including your pay, any interest or dividends on savings and investments, and social benefits.

Deduct any local and national taxes.

Next, list all your expenses. Whilst your rent, mortgage or home loan tends to be fixed, you do have some control over your more flexible expenses such as food, clothes and entertainment.

Include any repayments on loans. Look into how much you’re paying, and whether you’re getting best deal possible.

Then add a sum to cover those unexpected expenses, such as repairs to your car or washing machine.

3. Remember to save

Regular saving is one of the keys to financial happiness. We all have financial ambitions, such as buying the car of your dreams or buying a house.

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.