With the cost of living crisis really beginning to bite, and inflation putting pressure on household
budgets, there’s never been a better time to take expenses seriously. If you haven’t been putting
much thought into planning your spending in advance, then you’ll be pleased to learn that this is a
skill you can pick up with just a bit of application. Let’s take a look at a few of the tips and tricks that
will help you to stay on top of your outgoings.
What are the benefits of budgeting?
A budget will allow you to spend less in a given month. What’s more, it will ensure that you always
have enough money for the things that you need to survive and function. It’ll allow you to make
better decisions about your spending, and distinguish the frivolous items from the more important
ones. Budgeting will let you more effectively plan for major items of spending, too. If you know that
you’d like a new boiler fitted in time for next winter, for example, you can make monthly targets for
savings and stick to them.
Tips for budgeting
Let’s take a look at a few of the tips that might make a difference in your financial life.
Create a buffer in your budget
Every month is different, and sometimes you might find that life serves up a surprise or two. If
you’ve spent every penny of your budget in advance, then you might find it difficult to cope with
unforeseen expenses. By incorporating a buffer, you’ll be able to deal with these without expending
energy on advance planning. For example, you might find that your MOT is due in a given month. If
you have a generous enough buffer, then you’ll be able to deal with it. You can anticipate this sort of
cost by booking your MOT online.
Collaborate on the budget
If you’re living with another person, then it makes sense to keep one another posted about how
much you’re spending, and what you’re going to be spending it on. Once you’re on the same page
when it comes to money, you’ll find you have fewer arguments about it.
Pay off your debt
Debts will have a way of limiting your financial capabilities in the long term, especially in a period of
high interest rates. Make a plan for dealing with your debt and attack it. If you have trouble with
debt, then it might be a good idea to destroy credit cards so that you aren’t tempted to go into more
Keep a record
If you’re recording your plans when it comes to your spending, and then measuring how your actual
behaviour influences your spending, then you’ll be in a great position to troubleshoot later on.