Budgeting for Your Future

Making a Budget to Safeguard your Future

Debt can seem so overwhelming you have no idea where to start. However with the right planning you will be surprised at how much money you can free by simply planning your monthly expenditure. Most people plan for the future, a retirement plan, college funds, however they do not plan for the present. Without knowing exactly where your money is going you might find huge amounts disappear.

Most people believe they do not make enough money, some not enough money to cover their outgoings but careful planning can change this situation. This will take determination and organization but once a regular system is built can take simply a few minutes per week or month to organize your finances.

The first step is to look where you money has been going in the last month and how much money has been coming in. A simple way to do this is to set up your own personal accounts. On a large piece of paper divide it into columns at the top. The first column should be left clear for dates. On the right your income i.e. wages, grants, bonuses etc and a total column at the end.

On the left all you’re outgoings, i.e. rent, mortgage, rates, utilities, shopping, petrol, insurance, car repairs, presents, entertainment etc plus a miscellaneous column for all extra or unexpected expense. Also add a totals column at the end of this section.

Keep all receipts and place the amount received or spent in its selected column corresponding with the date this money was received or spent. For that row also place the total spent or received on that day in the totals column.

At the end of the month add your Total columns and compare your incomings to your outgoings. This is the best place to now start your budget plan.

Set your goals- what do you want for the future once you know this you can work towards your goal.

Set up a monthly budget allocation how much do you want to save, what do you need to pay off, how much money would you like to free up. You can then look to do this by looking at the best ways in which you can save money.

There are many ways to save money or to maximize you income here are a few

You could use cheaper brands to reduce your shopping bills?

If you have adult children or other family members living with you are they contributing enough towards the household bills?

If you have children from a former relationship, you may want to claim benefits for your child or see if your existing arrangement with your previous partner can be changed.

Could you possibly rent out a room in your home to provide some extra income?

Are you paying over the odds on insurance premiums and utility bills? Shop around for good deals.

If you own your own home, you may be able to release some or all of its value by remortgaging your property.

Check what benefits you may be entitled to.

Most importantly have fun with this once you have reached your goal treat yourself a night out on the town, a family day out, a nice meal, why not you deserve it!!