Make sure to set-up little check-ins on your progress. The best way to keep on track is to keep checking in on yourself. This is the money that you could save over a number of weeks, that helps purchase a smaller ticket item or achieve a shorter term goal, such as a new jacket for winter. A little tip to get you closer to your savings goals – treat savings like a mandatory expense and put aside your dedicated saving amount the same as you would for electricity or rent.įinally, look for smaller goals that are achievable with the money that isn’t accounted for in your outgoings. Whether you want to start saving for a home, or the trip of a lifetime, your goals are what drive you to set aside your hard-earned money, so write them down. Next, it’s time to think about your broader financial goals. This should see you have a better idea of how much you’ve got left to play with. You’ll have all of your costs in front of you, so start taking a look at things you could go without, to make your saving budget a little healthier. ![]() If your expenses are more than 80%, now’s the time to make cutbacks. Ideally, your outgoings are less than 80% of your earnings, so that you have opportunity to set money aside in savings. To understand how much you can budget, remove the totals for your outgoings from your earnings. Remove your outgoings from your income, and look for ways to cut spending A look back through the transactions on your everyday spending account is a good way to see where you’re spending your money and those forgotten direct debits too.Ĥ. Add these up (and make sure to round up!) so that you’ve got a good idea of all of your spending habits. These could include clothes purchased, your daily morning coffee or even movie date-night once a month. Then it’s time to identify the difference between mandatory outgoings (think rent or your phone bill) and your general lifestyle expenses. Split your outgoings into mandatory and lifestyle These will likely be fixed expenses such as a mortgage or car repayments, and then look at your variable expenses such as electricity, petrol or public transport costs for getting to work and food that you’ll likely pay each week.ģ. Make sure to factor in everything that you pay each month. Make sure this is accurate by understanding what your regular salary is before any variances (like overtime) and you’ll have how much money you’re starting with. The best place to start, is by knowing how much money you earn each week after tax and other deductions. This is simple if you’re paid monthly and your bills come out the same day, but if you’re paid bi-weekly or weekly you’ll need to take some simple steps to give yourself a weekly budget plan. ![]() Budgeting isn’t about being harsh on yourself, it’s about simply organizing your finances to know what you have to play with. No matter whether you’re saving for a rainy day, or a holiday, you’ll need to start thinking about budgeting. Set a weekly budget, prioritise your spending and save money. How to create a weekly budget If you’re trying to save money, budgeting is a great first step.
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