How to budget your money is vital. Especially when times are challenging, but also when times are good.
What is a budget?
A budget is a plan for how you will spend your money. It can help you save money and make better financial decisions.
Where to start?
Creating a budget can seem like a hard task, but it doesn’t have to be. This vlog will give you the tools you need to create a budget that works for you.
I’m going to outline the practical steps that you can take towards building your own financial story. Building a strong understanding of how money works and feels is empowering because it helps us make better decisions about our spending habits as well as invest in things like education or retirement planning for ourselves when we need them most!
It may feel daunting at first but following these easy-to-understand instructions with all their helpful tips & tricks will give anyone who puts committed effort into becoming financially savvy enough security not only now, but also down the road.
Moreover, I’ll also talk about the benefits of creating and following a budget.
Group your spending to budget your money
An important first step in how to budget your money is to think about where your money goes, and where you want it to go. Think in terms of groups – collecting buckets.
For example, a household is a group, which includes mortgage, rent, utilities, council tax, etc. Jot down all of these costs to create a group for money flowing out. Remember to include lifestyle costs, too. These would be things like eating out, entertainment, buying clothes, toiletries and so on. You’ll need the actual amounts next to each. But also, the frequency with which they occur – are they one-time only, or perhaps weekly/monthly expenses?
Once you do that, you’ve got your first collecting bucket sorted. It’s then time to create the other bucket – money coming in. This group will include:
- Earnings
- Benefits
- Gifts
It’s a good idea to put all of this in a spreadsheet so it’s nice and organised. It will also make it easier to make the calculations and see where you are. The same principle applies to personal and business budgeting. In addition, it will be a very handy document to have that you can revisit and adjust as necessary in the future.
Conclusion
So there you have it, my practical tips on how to budget your money and build your financial story. I hope this was helpful for you. If you want more information or if you have any questions, please be sure to subscribe to my channel so you don’t miss an episode. And until next time, remember that you are in control of your finances and your future.
Once you have a budget, and use it, you can start making meaningful decisions and changing your beliefs. You’ll get yourself back to where you want to be, budgeting, saving, and reaching your financial goals.
If you want your numbers to be more accessible and easier, then grab a copy of my book I Hate Numbers. According to one reviewer:
“This is the best, most straightforward, pragmatic and enjoyable book I’ve ever read on finance for business. It’s a must-read for all entrepreneurs. Your clarity, humour, wisdom and great advice shine through as you make numbers accessible and easy for everyone.”
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