The first step to taking control of your finances is doing a budget.
It will take a little effort, but it’s a great way to get a quick snapshot of the money you have coming in and going out.
Why Set Up a Budget
Setting up a budget means you’re:
- Less likely to end up in debt
- Less likely to get caught out by unexpected costs
- More likely to have a good credit rating
- More likely to be accepted for a mortgage or loan
- Able to spot areas where you can make savings
- In a great position to save up for a holiday, a new car, or another treats
Where to Start
To get started on your budget, you’ll need to work out how much you spend on:
- Household bills
- Living costs
- Financial products (insurance…)
- Family and friends (presents…)
- Travel (car costs, public transport…)
- Leisure (holidays, sport, restaurants…)
Just grab as much information as you can about your income and spending (bills, bank statements…) and get started.
You can save your information and come back to it anytime you like.
Alternatively you can set up a budget using a spreadsheet or just write it all down on paper.
There are also some great free budgeting apps available and your bank or building society might have an online budgeting tool that takes information directly from your transactions.