But if you’re regularly spending a lot more than you earn, the next budgeting steps could really help you.ģ.

Got money left over? You’re doing well and it might be worth exploring more savings options. This is a light-bulb moment for many people, and you might be surprised by the answer. But you’ll get the best out of your budget if you’re willing to put the work in now.ĭon’t be surprised if you stumble across bills for items you didn’t realise you were still paying for – forgotten sports club memberships and old magazine subscriptions are common finds for many. Soon enough, you’ll see whether you’re spending more than you earn. Either way, do double-check your spending because it’ll help to be as precise as possible.Īs a rule of thumb, go through the last two or three months of your current account to spot trends and patterns. These will likely include online subscriptions, eating out receipts, travel, impulse buys, supermarket bills, clothes, bills, rent (or mortgage), sports, personal treats – the list can be very long, to say the least! This is the task which will take up most of your time. Others prefer apps that detail your ins and outs, and do the hard work for you. Some like to print out bank statements and go through them line by line with a highlighter pen. It’s crunch time – find out exactly where your money’s going. How much do you spend monthly? Be as accurate as you can Try giving yourself 20 minutes a day to work on it – after a week, you’ll be surprised at how much progress you can make.Ģ. Really pushed for time? Don’t feel you need to thrash it all out in one go. It could take away some of life’s stresses, and help you spend money without feeling guilty. If you’re struggling to stay motivated, try to visualise what budgeting could do for you. Getting started is always the trickiest bit – especially if you don’t have the details immediately to hand. Take an average, or a rough range into which your income falls into each month. If it all feels like hard work already, you’re not alone. If you’re self-employed or part-time, it’s not always so easy to calculate. Include any benefits or tax credits, pension or savings income and – if you have shares – dividends too. Of course, most know how much they earn in a year but it’s your monthly take-home figure after tax that really counts.

What do you take home every month? Put down a precise numberĮvery budget starts with this figure – how much money you get each month. Get started with our six tips below which show you the key basics of budgeting. Whether you’re an ace with apps, a spreadsheet whizz or prefer old-fashioned pen and paper, it doesn’t matter how you do it – pick whatever works for you.ġ. Now admittedly, it’s not the most thrilling way to spend a few hours. But discovering where every bit of your money goes can bring huge benefits. It can help you feel more in control, give you peace of mind and even encourage you to save for the future. If you haven’t tried it before, there’s usually more than a few financial surprises – and often an eye-opener or two.

Here’s where making a budget could really help – and it could be a lot easier than you think. And with rising prices and bigger household bills, now could be a good time to take a fresh look at your personal finances. Think ‘budget’ and you might imagine cutting back, a stack of bills and a need to balance the books. But a budget can also mean a longed-for holiday, a new car, more money in your pocket and being able to sleep more easily at night. It plays such a vital part in the way we look after our money, so the way we think about it matters too. In a nutshell, a budget simply helps you keep track of what’s coming into – and what’s going out of – your bank account.

Budgeting tool