We all have financial goals we want to achieve, but the first step is to make sure you are budgeting in order to achieve them.
Here are 6 steps on how to budget your money:
1 – Make a note of the monthly income you receive after-tax (take-home pay).
2 – Then list all of your essential outgoings (rent/mortgage/ bills/ food etc). You can either do this on a spreadsheet or there are many online budgeting tools you can use.
3 – Next, note down any debts you need to repay (loans/credit cards/finance, etc).
4- Then consider how much you need to put towards savings, this depends on what you are saving for, but a good goal would be to put away 10% of your take-home pay towards your savings.
5 – You then know how much is left over to spend for the rest of the month (disposable income). Make a list of the things you like to spend your money on (eating out/ clothes/ memberships etc).
6 – Always leave a small buffer for things that may come up that you did not plan for (a repair on your car/ a birthday you forgot about!).
Every month is different, so it is good to do this a few days before you are due to get paid every month, that way you can plan for the month ahead.
You may find you do not earn enough to cover your outgoings. It is good to find this out sooner rather than later, so you can make lifestyle adjustments and avoid getting yourself into debt! Or maybe it is time to ask for a pay rise, or consider the next step in your career!
If you have any specific questions, get in contact!