![]() The part of budgeting which is usually the most difficult, but often makes the biggest impact… it’s now time to set your discretionary spending budgets. The more specific you can be about how much money to dedicate to each goal, the more likely you'll achieve it.ĥ. If you want to save £1000 by the end of the year, for example, you would need to put away £83.33 a month. Once you’ve set your goals, you can determine how much you need to save each month. For example, instead of “save to buy a house”, your goal should be “save £25,000 for a deposit within 5 years”. When deciding on your goals, try and be as specific as possible. Staying on track toward long financial goals such as buying a house This usually involves achieving an end goal, such as: Most people who make a budget do so because they want to accomplish more with their money. ![]() It’s important to define your goals when budgeting as it’s likely they will impact the choices you make during the process. Determine your goals and how much to save ![]() Once you have added all of these payments to the spreadsheet, the ‘Incomings - Outgoings’ row, found second from the bottom, will show the money remaining each month. It is important that your essential outgoings are added in accurately, so it can be useful to refer back to previous bills - these can often be retrieved online or by phoning your provider. By subtracting these essential payments from your total incomings, you will be given the amount remaining each month for both savings, and discretionary spending. Even if you wanted them to be, the chances are many of these payments cannot be reduced. Rent, bills, tax - these are your essential outgoings. Once you have added all of your individual monthly incomings you will see your total monthly income has been totalled for you. If you need to add more rows to the spreadsheet, simply right click and insert. The spreadsheet has been pre-populated with incomings and outgoings that are common to most people, you can add or remove items depending on their relevance to you. Self-employment payments, side hustles, or rent from tenants should also be added to your incomings. If you receive Universal Credit, work out the monthly figure and add this below. Enter this figure to the spreadsheet within the ‘Salary’ row. Work out your incomingsīy either looking at your recent payslip or using an online salary calculator, work out your monthly employment payments after tax, student loan payments and any pension contributions. Once you have all of this information at hand, you can begin to fill out your budgeting spreadsheet. Information on any other incomes you have, for example Universal Credit ![]() It can be easy to forget some of our monthly expenses, so to help with the budgeting process you will need:Ī 3-month bank statement - this can be retrieved via online banking or by visiting your local branch To budget effectively and accurately you will need a clear idea of your monthly incomings and outgoings. ![]()
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