Managing your finances can be difficult, especially when there are lots of household bills and outgoings to take care of. If you are struggling to manage your money, then there are a few solutions you can try, including making a budget planner.
By setting up a budget planner, you will have a better idea of what you are spending your money on and where you might be able to save money, as well as keeping on top of when bills are due, so you avoid missing payments. Just by having your budget planned out, you should find that you are able to cut back on spending.
How to make a budget planner
Choose the planner format
Firstly, decide how you want to create your planner, using the method that works best for you. Some people use an Excel spreadsheet, while others use an app, or you can stay traditional and write it down in a notebook. Think about which method will work for you and ensure you stick to it.
Gather financial information
Next, you need to gather all of your financial information, such as bank statements, bills and any other information regarding incoming and outgoing money. This will help you track your outgoings easily.
Calculate monthly income
You then need to calculate your monthly income, which includes any money you receive each month, such as your wage, benefits, child support, plus any other type of income, including cash.
Create a list of monthly expenses
By going through your bills, bank statements and recent receipts, you should be able to list all of the regular expenses that you pay each month. This should include everything from mortgage/rent and utility bills, to travel, eating out and socialising. Anything that you spend money on each month needs to go onto the list.
Work out the difference
Now you need to work out the difference between your monthly income and your expenses. If your income is higher than your expenses, you should be able to find a way to manage your finances. If your expenses are higher than your income, you need to find ways to reduce your spending and stop making purchases that are not essential. You might also be able to switch providers for household bills to save some money, so investigate ways that you can save money each month.
Record spending each month
Now that you know what your spending limit is each month, you can monitor your spending when you are reaching your limit. You should also keep recording your income and expenses every month, so you know exactly where you are up to.
If sticking to a budget is not easy, you still have options and Central Liverpool Credit Union is here to help. If you open a savings account with us, we will give you free, expert support to make changes that can help you to improve your finances.
Try an online budget planner
The following budget planner is provided by the money advice service. Read more about the budgeting tools they offer.