new year new budgeting start

Not more Budgeting Tips to help you save!!!

It’s a New Year so why not have a New Start? you’ll see many articles about budgeting your finances and how to save money or spend your money wisely and there is a reason for this……. because it is an important part of life.

I am sure you want to be able to have money spare to afford those little luxuries in life or just to be able to be secure in the knowledge that if some emergency does come along, you are pretty much covered.

So here are a couple of tips you probably already know about but we thought we would remind you.

Put aside 50% of your income for essentials

Every time you get paid, if you can, put half of it aside straight away! (or as much as you can possibly afford) Better even, put it into another bank account. You could open another bank account and take advantage of the switch offers banks and building societies offer us each year

Essentials are your big predictable monthly bills such as mortgage, rent, transport, gas, electricity, mobile, digital TV, council tax and short term loans. It’s also worth including essential groceries like milk, vegetables, pasta, fruit, shower gel etc.

Some things that are not essentials, like posh crisps,  takeaways, alcohol or trips to the movies,  these items are those little luxuries, but you could live without them when money is tight.

Track what you’re spending

This is the tedious part, but like going to the dentist, you’ll feel so much better once you’ve done it. For the first month write down everything you spend, from the weekly food shop or buying a lottery ticket to grabbing a packet of crisps on your way home from work. Keep it simple by writing everything you spend in a document on your phone or use an app to keep track.

Make your money goals a priority

Set your goals – whether that’s saving for a house, having more spare cash for family holidays or paying off your overdraft. Pick a goal that’s most important to you and be confident that you’re making it happen.

Use an app to do the work for you

Budgeting pros swear by the new breed of apps, which will do the complicated bits for you. Moneydashboard (free) helps you to see where your money is going through easy to follow visuals and lets you plan your spending by balancing your income and outgoings to show you where you can save and you could also try this Guardian article which lists a few great budgeting apps for you

Keeping it real

Online gambling will drain your account!!!! you might think that a cheeky £10 bet here and there on a gambling site or a bingo game isn’t hurting, but the times you win, almost never cover the amount you end up paying each month.

It’s important to be honest with yourself about what you can afford. This will help you feel proud about sticking to your budget. On a night out, decide what you’re going to spend and stick to it. No exceptions, stay strong! After all, the next morning you won’t appreciate last night’s £6 kebab any more than if you’d just rustled up some beans on toast when you got home.