Budegting, oh what a painful necessity it is! I used to hate sorting out my budget and I know there must be people out there who feel the same, however the truth of the matter is we all need one.As I have been using my budget effectively for a while I thought it might be worth me sharing a little bit about what I have learnt and also some of my struggles. It is not always easy saving for something or sticking within your means, if like me you love makeup, clothes and meals out. The best decision I ever made was deciding to set up a budget to save for my future.
My budget has always been a massive help to keeping me on track and honestly it has prevented me from overspending on many occasions. As some of you might be looking at starting a budget and others might just be looking for new things which may enhance their current one I thought I should probably start by sharing my budget set up.
To start with I always use my printed excel spreadsheet, which has reoccurring categories plus space for extras. I will be showing you my way of setting it up, but with a dummy balance as I think income ect is a bit too personal to share.
Firstly start by setting out what you want to save for such as; a house, car, holiday, bag, shoes whatever. I always stick my goal date and amount on the sheet, this is to keep the goal visual. I have a separate sheet for tracking these goals. I also check for any important dates within each month: 11th March – Mothers Day, 20th – Deb’s birthday celebration (boyfriends mum). I do this first so I can see what my priorities for the month are and can allocate my funds accordingly.
You want to take a note of all incomes: paycheque, pocket money, student loan, side hustle’s.
Now you have that figure list your bills: rent, mortgage payments, phone bill, gas, electric, subscriptions ect.
Then any debts: to bank, sister, cousin, phone company, student loan repayment.
Once you have all the above figures you need to take the bills and debts away from your income. What you are left with is the play-around money in this example it’s £765.00.
With this I usually split it down into my priority savings aswell as birthdays and christmas as I know those two things happen every year.
I think it is really important that if there is a minimum repayment on your debts each month you aim to pay off at least that or hopefully more. In my example the minimum repayment on my car each month is £100.00. I know when I was in debt it was phyiscally impossible for me to pay all that I owed for the first few months and to get round this I foucused on the ones that charged the most insterest first and worked my way through until I was left with everything being repaid.
Now you have your outline of a budget set out how you’re going to implement this. Personally I use the Dave Ramsey envelope method, this is where every month I split my money into envelopes and leave savings on my card to remove the temptation of just spending.
P.S. No month is the same so reevaluate where you will be allocating your playaround funds. I leave my holiday amount the same along with my makeup allowance everything else will change depending on bills and events.
I hope this helps and if you have any tips feel free to share them in the comments!