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Budgeting and money management

We all worry about money sometimes, but it’s important that we don’t let money worries control us. 

When you find yourself worrying about money, the best thing to do is take action. By being aware of your spending and saving habits, you can start to have more confidence in your financial decisions and create a more positive relationship with your money – however you choose to manage it. 

It’s not always easy to keep your finances in check, so a bit of financial planning can be a useful thing to do. Everyone’s different and there’s no one right way to do it, however to help you figure out the best approach for you and your plans, we’ve put together some helpful information. 

Need help with budgeting?

Without a full understanding of your spending and saving habits, it’s easy to find yourself with too much month left at the end of your money. By taking a bit of time to work out your income and outgoings, and assess your individual situation, you can create a realistic budget to help you feel more in control.

Creating a budget can be a daunting thing, however the key is to be honest with yourself and really think about how you spend your money: even down those snacks you buy yourself whilst out and about. 

If you find that a monthly budget just isn’t the answer for you, you could start with a daily, or even weekly budget instead. It’s all about finding what works best for you and your plans.

How do you create a monthly budget?

Step one: Know how much money you have coming in

It might sound obvious, but it’s really important that you know how much money you have coming into your accounts each month. This is usually the combined salary of everyone in your household, plus money from any benefits you might be getting. 

Step two: Work out how much money you spend each month

Some of the big things that you spend your money on will be your mortgage or rent, groceries, utilities, childcare and commuting. It’s important to understand the difference between these needs (the things you can’t really control) and your wants (the things you can). Your wants, like a new outfit or a lovely houseplant, can soon add up – but a little treat every now and then can give you something to look forward to, so it’s a good idea to allow for one-off costs in your calculations. By creating your budget, you’ll know how much you can spend on your wants, while ensuring you’ve got enough money left to cover the things you need. Our budget planner tool can help make the maths a little easier for you.

Step three: Create your monthly budget

Once you know what money is coming into your account, and what’s going out of it, it’s simply a case of working out the difference between the two. This will be your monthly budget (or weekly budget if you choose to do it that way). 

Now you’ve got your budget in mind, you can have a think about how much you’d like to transfer to your savings, and whether you need to make adjustments to how much you’re spending. 

Remember that no two months are the same, so spending a little bit of time checking in on your finances each month will help you understand your spending behaviour over a longer period of time, meaning you can feel more confident about the financial decisions you make. 

Need a little extra help with your finances?

We’re here to help you feel more confident about your money. If you would like some help, we’re more than happy to talk to you about your finances and any money worries you may have. Simply give us a call on 03 456 100 188 or send us a Secure Message via your App or Online Banking and we’ll give you a call back.