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So you’ve compiled a budget, you have it in front of you, but its making no sense whatsoever. What do you want out of your budget? What is budgeting? What are the benefits of budgeting?
According to the Oxford English Dictionary a budget is “an estimate of income and expenditure for a set period of time”.
But importantly, while the word budget can imply that you have to do without, this doesn’t have to be the case. By taking the time to study your own spending patterns and habits, can give you an awareness that you may not have previously had.
You can use your budget as a tool to help you live within your means, or a tool to help you control your money by directing it where you want it to go.
Remember that a budget is more than just bills and expenses, it’s your life.
Most people I speak to on the phone don’t account for the fun things in life, like going for coffee with friends or even renting a film out (which can be bad), but having a budget should not stop you have some fun in your life.
Here are seven tips on how to make an effective personal budget:
Payment Interval |
Multiply By |
Divide By |
Weekly |
52 |
12 |
Fortnightly |
26 |
12 |
Four-weekly |
13 |
12 |
You work hard for you money so make your money work hard for you too!
The IFP Financial Planning Week continues throughout this week (21st – 27th November), with a wealth of webchats, online workshops and articles to help you improve your financial situation. You can follow the IFP on Twitter and follow Financial Planning Week on Facebook.
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