Tips on Budgeting

The current climate has got us all very much worried about our finances. We can feel overwhelmed and anxious, even experiencing sleepless nights.

Please remember that help is on hand and that you should not suffer in silence. Please reach out to your local services to find out what you can access in terms of support. There is always hope in sight so please do not feel you cannot find the help you need.

In this blog we wanted to cover the first step in any financial wellbeing journey. If you have not looked at how you are budgeting, this is a good step to understand how you are managing your money. Budgeting is not only about managing your money but also how you can tackle and control your spending. It is not all doom and gloom it can give you the NorthStar to saving for something you really want.

Taking inspiration from The Money Charity they have devised the following Top 10 Budgeting Tips

It can be tricky to keep to these but consistency is key, and you can absolutely do it!

1. Be Honest. Don’t try to skip certain items or underestimate your spending.

2. Be Consistent. Keep track of your daily spending. The little things that you buy can soon add up, which means you are probably spending more than you think. Keep track of all your spending with our free Budget Builder.

3. Keep Motivated. Regularly remind yourself of the things the budget enables you to do.

4. Plan for Occasional Expenses. Make sure you budget for expenses that only happen a few times a year like gifts, car insurance and trips to the dentist.

5. Plan for Both Fixed and Variable Expenses. Fixed expenses are things like rent and council tax, and variable expenses are things like utilities, groceries and travel.

6. Assess the ‘Extra Spending’ in Your Budget. If your budget still doesn’t balance, it’s time to cut back on non-essential spending. Could you have one less coffee a day? Or take sandwiches in to work?

7. Don’t Beat Yourself Up. Everyone will go off their budget occasionally, no matter how much money is available to you. If you end up going out for dinner with your mates, instead of a quick drink after work, don’t get disheartened, simply revise your budget and see where you can recoup the money moving forward.

8. Don’t Try to Deprive Yourself Too Much. Just like a diet, if you do, you will find it much harder to stick to in the long-term. Find a balance between saving and the occasional treat such as that bottle of wine or those new flowers for the house.

9. Review Your Budget Every Month. This will help you keep on track.

10. Have Fun! Enjoy spending your hard-earned money as long as you’ve made provision in your budget!

If despite all this, you’re still struggling to balance your budget after cutting back on spending and are concerned about the amount of money you owe, it’s important to seek help as soon as possible. Spending more than you earn each month isn’t sustainable in the long-term, and will push you further and further into debt. For free debt advice, speak to StepChange.