Money and Budgeting
Unexpected events happen at some point in your life, whether it’s a health related issue, redundancy or the death of a loved one. This can affect your life on many levels. In particular, they can have a devastating effect on your finances and how you manage your job, bills and living costs.
You may think it would never happen to you but you may find that you are not bringing in as much money as you’d like. You may have been trying to save but something has got in the ay such as rising living cost or an emergency.
We want you to have a full understanding of your situation as well as how best to manage your household bills and debts you may be dealing with.
Taking the time to work out a budget to cover your living costs and debt repayments can help you take control of your finances and your life again. It can also put you in a much better position to deal with unexpected expenses and debts.
Budgeting Advice. Why do you need to budget?
A budget is an estimate of income and expenditure for a set period of time, for example, a month.
Creating a budget is the first step towards taking control of your finances and getting your situation back on track. Budgeting helps you to see where your money is coming from and going, so it’s easier to make sure that you’ve covered all of the things you need to pay during that period of time.
How to create a budget
Step 1: Work out your total income over the month. Add together all the income you get each month.
Step 2: Make a list of everything that you send each month. You should include amounts from things that you pay for once a year less often, such as Christmas, card payments and household bills. With a budget you can set money aside to ensure you have enough money to pay these bills.
Step 3: Deduct the total amount you spend each month from your monthly income. If you have any money left over after you’ve paid all your bills save this money in a savings pot for future use and in case of an emergency.