Budgeting Tips

Many of us are feeling the pinch at the moment. Rising inflation, increasing energy bills, falling disposable incomes: it can easily feel that, now more than ever, our budgets have to go that ‘extra mile’ from month to month just to cover basic costs.

With this in mind, planning a careful and well-managed budget could be a great step in making your money go further: helping you to cover your costs, giving you that bit more financial security and reducing the risk of having to get into debt in order to make ends meet.

Sometimes a few little changes can make a big difference to our finances – so here are a few tips that could hopefully help you to do just that.

Think about what cutbacks you could make

It’s not necessarily the large expenses that are putting a drain on your finances. In some cases, it’s those ‘little and often’ spends you may not think too much about that are making a dent in your money.

For example, do you regularly buy coffee at work every day, rather than take your own? Buy your lunch from cafes rather than take a packed lunch? Pay for a gym membership that you rarely use? It can be worth revising your budget and making any cutbacks you feel would make a difference to your finances, even if it’s only a bit at a time.

Consider ways of boosting your income

Earning more money is always nice – and in the current climate, every little bit could certainly help.

There are many ways you could increase your income. To name just a few:

• Do you have any particular skills that could earn you a bit more money? Do you speak any foreign languages you could teach? Are you skilled at DIY or home improvements and able to help people redecorate? Whatever talent you have, it could really pay! Just make sure you understand the tax / benefit implications first.
• Do you have any items you no longer use that you could sell? You may be surprised by the value of items you have gathering dust in the attic or cellar that could earn you some money at car boot sales or on websites such as eBay.
• Do you think you could fit some extra hours in at work? Doing overtime whenever possible could really make a difference to your overall monthly pay packet.

Try new ways of managing your money

Are you getting the best deal from your current bank account? There are many different accounts out there, so shop around and consider switching if you find a more competitive deal elsewhere. A basic bank account could help you to budget and live without an overdraft, for example, and could make it that bit easier for you to set aside money for bills and other financial commitments.

You could consider setting up Direct Debits for your utility bills, so the money will leave your account automatically every month when your payments are due. Or you could make a point of building up savings for any upcoming events – such as Christmas or a family holiday – so you’re financially prepared when they arrive.