How to make a personal financial budget

Make a budget: so you can understand what money you have coming in and exactly where it is being spent. Learn to keep it balanced and not live beyond your means.

Saving is important – you should have some type of savings set up. This should be controlled by you so you can see what happens when you save and what happens when you do not.

Personal finance is important. It’s best to learn this before you set out on your own and have to rely on yourself to keep your personal finances in check.

Tips

  • keep your own Money Diary. Once you’ve kept track of your day-to-day spending for a month or so it will be a lot clearer where your weaknesses lie and where you are able to cut back
  • a budget is a useful and relatively easy way to ensure you don’t overspend – it can also help identify problem areas in your finances and can potentially allow you to make some serious savings
  • set aside an hour this week, equip yourself with a few monthly bank statements and a couple of marker pens and write yourself a budget
  • writing a budget reduces stress, enables you to monitor and plan your spending, and get in control of your finances
  • you can also cut back on unnecessary spending, thus saving money, and use your money to achieve your goals in life

Source: Personal Finance, Moneywise

Tools

Read more

  • How to Budget Your Money As a Teen @ WikiHow

    Excerpt: So you have been working and making money but after a few indulgences, you have been slowly running out. Maybe you have to make your money last between jobs. Here’s how to stretch and properly budget your money as a teen.

  • Write a budget @ Moneywise

    Excerpt: This method highlights exactly how easy it is to waste £10. You may spend a couple of pounds on a magazine, a few more on a snack and bottle of water, and yet more on a spontaneous but non-essential purchase. Individually, they may not seem expensive but on a daily basis they can quickly add up.

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