Manage the household budget
We have a government with professional financial advisors that has let the country spiral into debt so how are we supposed to keep our finances under control?
Quite easily with yet again, a bit of planning.
Work out your spending
So many of us meander through life having a rough idea of what we earn and what we spend and then get a serious wakeup call when we finally take time to look at the bank statement.
One of the most important things you can do is to sit down and work out exactly where your money is going and on what. This then needs to be balanced out against the household income. You may be very surprised at how much is going out on unnecessary items and all those little impulse buys. Get a notebook and carry with you at all times. Write down every single ‘little extra’ purchase you make and at the end of the week add up how much these extras have cost. Did you really need them or could you have managed without.
What you need to do is to block out some quiet time to fill in a budget planner. Take the phone off the hook, close the door and put a do not disturb sign on it and get all your recent bank statements and bills together. Now fill in a budget planner so that you can finally discover where you are with your finances.
If you don’t already have your own planner use the links below:
This planner is all set for you to print out and write in your amounts to see how much money is going out against how much money is coming in.
This planner is set up in an excel document so as you type your figures in it will automatically calculate figures for you. It also has a graph showing what percentage of your income is going on what items. A very eye opening and useful tool
So now you know where you are financially. If you have excess disposable income available at the end of each month, well done. You can now look into ways of investing this for the future.
If not, and you have a deficit, then you need to take action immediately. Go read the articles in the home finance section to find simple ways to save money around the home
Author: Angie Taffs