Better budgeting

Budgeting doesn’t come easily to many of us but, it is important to ensure that you don't have more money going-out than you have coming-in.

Many websites feature budget spreadsheets and charts to show you how to create a budget but sometimes they can seem a little overwhelming.

Basically, you need to write out a list of “Money In and “Money Out” then see how they balance.

Budgeting needn't stop you from having fun. In fact budgeting can help you enjoy life more by removing the worry of not knowing where you stand. If you can highlight any 'weak spots' in your outgoings, than you know where you need to take appropriate action.

Budget tips

• Allow a little extra each month for “emergencies”… perhaps 5% of your total income. In reality, the unexpected always crops-up from time to time.
• Try and save a little every month, at least 5% if possible. (Also see “All the small things” and “Pay yourself 1st”)
• If your income is insufficient to cover your spending habits, you have a simple choice: either to make cutbacks in certain areas, or to generate some additional income.
• Don't make the fatal error of using a credit card to pay for things you can't afford within your budget. The money you borrow will eventually have to be repaid, along with the additional interest.

It's all about applying common sense and setting your priorities up correctly. For example, there's no point having a big pension pot (that you can’t access for another 30 years) if you're not able to pay your rent or mortgage.