Sorting out your finances.
Ignorance is bliss isn’t it? Absolutely not! You cannot afford to ignore your spending, your dreams may depend on it. Money worries can be a big distraction when making plans. You can’t change the reality of where you are, but you can take steps to safeguard your future. Whatever your dream or goals may be, often there will be a need for monetary input. Being in control of your finances will also allow you to have a quiet confidence, when striving towards your goal. If you focus on them at the beginning of your journey, you will be putting yourself into a good position for when they are needed.
Budget Planning
Start by writing down your monthly income after tax. This includes salary, regular overtime, state benefits, maintenance and any other sources of income you may have coming to you monthly.
Then in another column write down all your outgoings, this should include: rent/mortgage, utility bills (gas, electric, water, home phone, broadband, council tax), mobile phone, any credit commitments (credit card payments, loans, car finance etc), Insurances (Car, Home, Life Cover, Personal Accident), pension plans, petrol and car maintenance.
These are the non negotiable payments that must be paid before anything else. This does not mean they are set in stone, but by reviewing them and switching to other providers you can save yourself a lot of money.
Other payments are more flexible and within your complete control these include food shopping, subscriptions ( TV, Movie channels, Gym, Hobbies), Social pocket money (Takeaways, Drinking, Lunches, Nights out) and Personal Care (beauty treatments, nails, hair, massages). Be honest with yourself and think about which of these you really need and use. It takes seconds to subscribe and moments to forget to use them.
Once you have them all listed add them together and minus the total from your income. The amount you are left with is your disposable income and unless you actively put it away into saving each month it will disappear. You can have as many saving accounts as you like so why not have a few that you name for different events and projects. Even a small amount will grow over time and may take the pressure off.
Banks offer free account reviews so why not pop in and speak to an adviser.
Create your own budget planner.
Once you have got to grips with your monthly finances, start thinking about how you can keep on top of them. Ideally you want to be tracking your progress monthly, if not more frequently. There are lots of apps and software available online full of printable forms and graphs to help you do this. Many banking apps have built in filters, so you can see exactly which retailers or venues are stealing away your precious resouces.
If you are more in touch with physical tracking then download some free printable forms and place them in your diary or on the fridge door. Visit your local stationary shops and browse through the stunning notebooks available full with trackers all ready set up and ready to use. Just make sure you choose ones that are relevant to your spending habits. You can always add a few motivational images or quotes alongside to help keep you on track.