5 Practical Tips for Budgeting

Mike Page's picture
Authored by Mike Page
Posted: Tuesday, November 12, 2019 - 21:46

No matter how hard you work, sometimes your incomings just don’t cover your outgoing expenses, especially if you are having to provide for your family or have a lot of bills to cover. While there is no straightforward answer to covering your costs, budgeting can be a very useful tool for helping you to manage your finances more effectively. Unfortunately, budgeting is a skill that not everyone has a lot of experience in. So, if you’re trying to work on your aptitude for budgeting, and aren’t sure where to begin, here are some practical tips which you might find useful.

Plan in advance

Every month is different, and sometimes you’ll have to make extra room in your budget for necessary supplies and services, such as school uniforms for children or repairs to your car. Therefore, it is important that you look ahead at the coming months, and prioritise the items that will need financial attention. For example, if you know that you have an MOT scheduled on your car, then you can start putting aside money in advance in case you have to pay for repairs.

Put money aside for emergencies

Unfortunately, you cannot always predict all of your expenses accurately, as there will be some unexpected costs that crop up from time to time. For this reason, you should try to put aside a small portion of savings from your income when you can, so that if any costs do come up that you haven’t anticipated, you won’t be left without enough money to cover them. A common reason people get themselves into debt is through trying to cover costs they can’t afford, so topping up your savings is the best way to avoid unnecessary debt.

Get financial advice 

If you’re struggling with debt repayments, it is important to seek help and support to address this issue as soon as possible. For example, you might want to get advice on how to consolidate your debts into a single, more manageable payment plan if you are struggling to deal with them individually.

Avoid unnecessary expenses

There are always ways to cut down your expenses and live more sustainably. For example, you could try cooking meals in bulk in order to cut down waste and the cost of raw materials and then freeze the extra food to be used at a later date. Additionally, rather than simply replacing things around the home when they break, you could utilise appliance repair, or try upscaling and reusing items around the home instead of trading up. You should also consider buying second hand or pre-loved items when you can, as this will help you keep costs down.

Keep a record of expenses

It is difficult to stick to a budget that hasn’t been properly laid out or written down, so it is important to keep a detailed record of your incomings and outgoings. Keeping track of your finances will also help you to determine areas where you can cut down more if your expenses are high, or determine how to alter your budget if it isn’t working for you.

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