#budgeting #budget #personalfinance #financalfreedom #money #finance #savingmoney #savemoney #budgetingtips #moneytips #savings #finance #newyear #moneysmart #moneymanagement #budgetingtips #babysteps #tips #ideas #savings #goals #personalgoals #life #moneygoals #debtfree
Welcome to the world of budgeting! Enjoy the confusing ride... kidding! When considering your finances you could run and hide and bury your head in the sand, or you could tackle it head on. Budgeting is not easy but it is worth it in the long run. I am tackling this currently, hence where I got the idea from to write this new upcoming series!
So lets get started with this first post!
What is budgeting?
Budgeting is where you create a set plan on how you will spend your money. it is where you look at your income (what money you have coming into your account, this could be from a job, benefits etc..) and plan out what it is to be spent on (things such as bills, food shopping, essentials, debts).
Budgeting, is really important. it helps you take more steps towards financial stability and freedom. It can help you focus when you have a lot of out going expenses or if you do not have a lot of income .
For me now, budgeting is a very important element, I budget as I have bills to pay, a toddler to feed (who likes his grub!) and I am trying to save up the best I can to give him a good life.
Now you know what a budget is and why its important ask yourself this question..
Why do I want to budget? It is important to know why you want to budget, is there a certain reason? or a goal?
Creating your budget
So the best way to tackle this is baby steps. We are going to look at this in 4 broken down steps!
So Step 1 is to simply write down any income you have, how much it is and how often you get it, so example...
JOB- £40 WEEKLY
Benefits £50 WEEKLY
Write down any income like this, on paper (not in your head, write it down it will help).
Now the next step is to write down all outgoing costs you have and how much, so example
Food shop £30
Get some statements from your bank if you need to, this will help jog your memory and make sure you don't miss anything out.
Any other expenses? Do you have any upcoming birthdays, one off payments? Bits like that need to be included. Once again write these down and if you know how much they will be write the cost. If not write down an estimate.
Now this is the important step! You now need to write down a budget for outgoings such as; a food shop, birthdays, essentials, clothes, bills, debt repayments etc...
Firstly, calculate all your total income for a month . The best way to do this is write it all down (steps 1 and 2). Then for any one off payments, birthdays or bills set aside the money you need (Step 3)
Example of your steps all togerhter
Income date Outgoing cost balance
£350. 30th £350
Food shop £50. £300
Electric £60 £240
Mia's birthday £20 £220
This can be tailored to your incomes and outgoings but this is just one way to write it all down.
Once you've tracked your income and out going expenses , you can delegate. You can perhaps set aside £60 a month for a main food shop the. £10 weekly for essential top us such as milk, bread etc.
Top tip! To save on your food shop every month write a list of foods you already have in so you don't buy double! It will save you some money :)
Another way to save money and time with food, is to meal plan. Each week plan out your meals for each day :)
Monday- Pasta bake
Tuesday- Chicken pot pie
Wednesday- Omelette and chips
Thursday- Veggie stir fry
Friday- Pizza night
Saturday-Sausage, mash and cauliflower cheese
Sunday- Roast dinner
In a future blog we will dive deeper on how to save money with food and shopping :)
A final note
Once you have created your budget and list of incoming and outgoings, make sure to note any money you spent . By tracking your expenses you could potentially find something to cut down on and even perhaps set some money aside. Budgeting maybe seem like a chore, but in the long run it is a smart way to get on top of your finances.
All images from the talented people at Unsplash :)