Setting financial goals is a key step to effective budgeting. This personal income and expenditure is designed to provide a simple, yet effective means to identifying income and expenses. Use it to identify possible ways to save and reach your personal money goals.
Tip – if you have not done so previously, track all your spending for 3 months. As you do, also question the spending and ask if there are ways you can reduce some of the costs. Shopping around is great beginning. Ask if you spend “emotionally”, in other words, do you spend out of necessity or do you spend on some occasions just to feel good?
If you have a money goal that is really important to you, look for every means possible to cut the costs and increase the savings. Question everything, from food spending, car fuel costs, home insurance and even an old pension if you have one. The cost of everything is negotiable and if you haven’t switched your Life insurance provide in over 5 years or your broadband provider in the last 3 years, you may simply be paying too much.
Like we said, if you have never done this before, put your finances through the review process for three months-in-a-row and then, once a year thereafter. It’s amazing how your relationship with money can change by simply shining a light on how you manage it.
FREE Budgeting Buddies are available free of charge at all partner firms running our Employee Benefits Seminars