Budgeting in the current climate: how can I get my spending under control?
Q I’m finding it difficult to budget at the moment to the constant changes to prices, interest rates and so-called expert opinions on what’s going to happen. How can I budget better and try get both my spending and saving under control?
– As always, I’d recommend talking to a good financial broker, as they are perfectly placed to give you impartial advice. However, I have shown below some of our top tips to help you manage your money better.
1. Draw up a balance sheet.
A balance sheet contains your assets and your debts. After you’ve drawn up a list of all of yours, subtract your debts from your assets. This will give you your net value. For a free template, please let us know!
2. Give yourself a budget
To help you with this, use one of the many budget calculators available online.
3. Pay off your debts
Start by paying off those with the highest interest rates, and once they’re completely cleared, move onto the rest.
4. Save
Try to systematically save 10 per cent of your net income to create yourself some working capital, and then an emergency fund.
5. Tighten your belt
Live within your means. Reduce useless spending by, for example, bringing lunch with you to work rather than eating out. This will give you more room for manoeuvre when it comes to putting money away to create a nice nest egg.
6. Shop around for insurance
Before renewing your insurance policies, get a few different quotes.
7. Avoid impulse buys
Don’t spend beyond your means or your needs. Make a list before you go shopping and never buy anything on impulse.
8. Choose your bank wisely
Monthly fees, interest rates, service charges – accounts can differ greatly between one bank and another, so do your research and choose the account that best meets your needs.
This article aims to give information, not advice. Always do your own research and/or seek out advice from a Financial Broker before acting on anything contained in this article.