Written by: Annie Zygmunt
No matter how much you earn annually, it’s always a good idea to budget.
Budgeting can save us a lot of stress. As long as we plan for what we want, need, and may need, we can stop living our lives paycheck to paycheck. It requires thinking not only about the present but also about the future. When you budget, it becomes easier to lead a healthy lifestyle and treat yourself ever so often, while managing to keep stress levels as low as possible. No more stressing about what your next meal is going to be! So check out some of these budgeting tips:
First thing you’ll want to do is figure out how much you get paid (after tax) each month. For the purpose of this article we will use the lowest possible 2020/2021 salary as according to ONS, which was found to be £13,803 annually – or £1,150.25 monthly.
After this, you’ll want to make a list of the things you will need to pay for each month. Here are a few examples you may use:
Below but in a separate pile, make a pile of things you may want to pay for. Here are a few examples:
After having made the list, take off your needs from your wages. Note that number down and then take away the wants. Then you can do one of two things – either put the whole amount that you have left into savings (be it into an online bank account of piggybank), or save half of it by putting it into savings and leave the other half in your wallet/bank account to treat yourself throughout the month. Of course the first option helps you save more, but the second option may be what helps you keep going with the budgeting plan.
This article will introduce you to three types of budgeting:
There are many more budgeting method available that you can read about online.
There are plenty of budgeting sheets you can find online. Below you’ll find a few examples. You can either edit those to suit your needs, or make your own by using these as an inspiration.
Which one you pick may depend on what type of budgeting you’d like to use.
So really, the main tip is start from the beginning, and everything else will fall into place. Figure out how much you earn, take away what you must spend, figure out how much you’ve got left and decide how much of it you want to put away (save) and how much you can allow yourself to spend on things you want.
Sounds a bit easier this way, doesn’t it?