No one likes budgeting. It takes all the fun out of spending money. But to make sure you’re not left in a financial crisis, have a read of our how-to-budget guide.
By which we mean: how much money comes into your account each month?
To find out, consider your different forms of income:
From your grand total, deduct those boring-but-essential things like shelter and food. The outgoings most of us have are:
When you’re budgeting, it’s always worth factoring in an extra 10% of your essential outgoings per month as life loves kicking you in the ass financially. For instance, what if your car breaks down? Or it’s your mate’s birthday? Or some technical glitch means your bank doesn’t transfer your pay cheque to your account? It’s extremely important to have this 10% cushion – otherwise you risk being suddenly catapulted into a world of debt you haven’t planned.
This figure is your monthly budget and your disposable income.
It’s this leftover money you need to keep a beady eye on, as this is where you’re likely to overestimate how much you have. A £70 a week might seem a lot to start with, but once you’ve bought a round after work on Tuesday then a magazine and coffee on Wednesday then you’re already down to £55 and it’s not even the weekend yet.
Sometimes it helps you get a sense of how much you have by feeling the actual cash in your hand – one tip is to take out your weekly budget at the start of the week. You’ll soon get used to how much money you really have then. Best not wander about with all of it on you though, in case you get mugged or lose it.
Yes. There are lots of online tools that help you break down your spending. Here are some budget calculators we’d recommend: