Budgeting has never been my forte. In fact, I'm absolutely awful at it. This isn't the best way to be when 3/4 of my income goes on bills and the last 1/4 I need to pay off credit card debt and to eat with. Oh life. So anyway, I've decided enough is enough and I'm going to learn how to better manage my money. Here are a few ideas I've come up with that you may find useful yourselves...
1. Spreadsheets.
It's a great idea to write down exactly what your outgoings are on a spreadsheet. Then you can see how much you have to play with at the start of every month.
It's a great idea to write down exactly what your outgoings are on a spreadsheet. Then you can see how much you have to play with at the start of every month.
2. Forecasting.
Try to forecast, at the start of every month, what your outgoings are going to be. If you have an MOT due, or you know you have birthday drinks mid-month make a note so you can set aside some funds to cover it and it won't leave you short if you haven't prepared.
Try to forecast, at the start of every month, what your outgoings are going to be. If you have an MOT due, or you know you have birthday drinks mid-month make a note so you can set aside some funds to cover it and it won't leave you short if you haven't prepared.
3. Always round up.
When you are forecasting make sure you always round up. This way you will always have a little extra spare every month to spend on what you like or in case you have any unpleasant surprises.
When you are forecasting make sure you always round up. This way you will always have a little extra spare every month to spend on what you like or in case you have any unpleasant surprises.
4. Multiple bank accounts.
Some people may find this arguably beneficial, however I really find it useful to have more than one bank account. I have an account which all of my direct debits come out of and I also opened a bank account where I can transfer the money I am allowed to spend each month. I find it so much easier to balance my money this way. Then I also have a savings account which in all honesty, hasn't been used until this month (I have had it three years).
Some people may find this arguably beneficial, however I really find it useful to have more than one bank account. I have an account which all of my direct debits come out of and I also opened a bank account where I can transfer the money I am allowed to spend each month. I find it so much easier to balance my money this way. Then I also have a savings account which in all honesty, hasn't been used until this month (I have had it three years).
5. Be rational.
Always be rational with your spending money. E.g is it a good idea to buy the new Urban Decay eye shadow pallet when you may need to buy a new car tyre and you've not been quoted for one yet?
Always be rational with your spending money. E.g is it a good idea to buy the new Urban Decay eye shadow pallet when you may need to buy a new car tyre and you've not been quoted for one yet?
If you're a bit tight for cash and need a new pair of jeans, be practical, as much as those Levis look super sexy and they only have one pair left in your size, stick with a decent pair from New Look or H&M for now and when you're next in pocket, there will more than likely be another super sexy pair of Levis' just waiting for you to invest in them.
6. Split the month.
I always think it's a good idea to break your spending money down week-by-week. Otherwise you may spend everything in the first week and then when your colleagues all head out for lunch one afternoon, you will miss out because you just HAD to have that Lush Cosmetics haul on week 1. Trust me, I've made this mistake too many times.
I always think it's a good idea to break your spending money down week-by-week. Otherwise you may spend everything in the first week and then when your colleagues all head out for lunch one afternoon, you will miss out because you just HAD to have that Lush Cosmetics haul on week 1. Trust me, I've made this mistake too many times.
7. Save what you can.
Ugh. Saving is so hard. But I think it's always a good idea to set aside some money. Even if you're just putting any spare change into your piggy bank. You may thank yourself for it when you go over your phone bill next month!
I've realised that if I put £10 away in savings every month when I first started working and never spent it, I would be a-ok financially right now.
8. Event budgets.
If you know you're going to a friends birthday on week 3, set yourself a realistic budget of what you may end up spending on drinks, club entry, taxi fares and even the cheeky kebab for the way home. Don't be too harsh on yourself, you still want enough money to have fun, but stick with a budget so you don't end up splashing all your wages on one heavy night and regretting that and every other stupid thing you did the next morning. Yep, we've all been there.
9. Prioritise debts.
Where you can, always pay off as much debt as possible. Don't just stick to your credit card minimum, try to pay that little bit extra so you don't keep paying APR. Pay the nastier debts first. If you owe a relative some money but have only a small amount to pay on your credit card, see if they mind holding off for a couple of months whilst you finish those repayments.
Where you can, always pay off as much debt as possible. Don't just stick to your credit card minimum, try to pay that little bit extra so you don't keep paying APR. Pay the nastier debts first. If you owe a relative some money but have only a small amount to pay on your credit card, see if they mind holding off for a couple of months whilst you finish those repayments.
10. Recycle.
If you're a bit short one month, try to recycle some old clothes or gadgets on eBay, or at a car boot sale. You'll be clearing out at the same time as you're earning money. You can't really go wrong there! One man's junk is another man's treasure, you would be so surprised what people buy at bootfairs!
If you're a bit short one month, try to recycle some old clothes or gadgets on eBay, or at a car boot sale. You'll be clearing out at the same time as you're earning money. You can't really go wrong there! One man's junk is another man's treasure, you would be so surprised what people buy at bootfairs!
11. Regularly check your bank balance.
Try to check your bank balance at least once every couple of days. It's always good to know where you're at.
Try to check your bank balance at least once every couple of days. It's always good to know where you're at.
12. Include a separate budget for food.
I don't know about any of you, but most of my spending money goes on food or coffee. Include a separate budget for food shopping and any restaurants you plan on visiting with this pay slip. Then your 'spending money' will be just for you, for any tickets you plan on buying, a new pair of DM's or even the cute cushion you saw in TK Maxx. You crack on and buy it.
I don't know about any of you, but most of my spending money goes on food or coffee. Include a separate budget for food shopping and any restaurants you plan on visiting with this pay slip. Then your 'spending money' will be just for you, for any tickets you plan on buying, a new pair of DM's or even the cute cushion you saw in TK Maxx. You crack on and buy it.
13. Price comparisons
If it's time to renew you car insurance, or you're about to invest in a new electrical item, spend a few hours one evening shopping around to get the absolute best deal you can.
Helpful tip: I am just renewing my car insurance. I visited a few price comparison sites online until I found the best deal and then I approached that insurer directly who offered it to me for even less. Shopping around has saved me a whopping £700 this year!
14. Be prepared early for expensive months
Oh Christmas. Tis the season to be jolly, right? I'm fed up of getting stressed out every year about how expensive December is. It doesn't help that the birthdays of my entire family fall in either December or January. So I'm going to be more prepared and start saving early. I will also start putting some money aside a few months before my MOT as well and also preparing for 5-week months. It's just not worth the added stress. Then if you don't need all the money you saved... treat yourself!
15. Safety net
It's a good idea to always have some back-up cash in your account, just for a rainy day. Try to never let your bank balance get below £50.
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I hope you found at least some of the above useful. If you have any useful money-managing tips, feel free to comment below.
Thank you for reading.
Mel x
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