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Zedekiah Nainggolan
Jouska Article
The first step to taking control of your finances is doing a budget. It will take a little effort, but
it’s a great way to get a quick snapshot of the money you have coming in and going out. Setting
up a budget means you’re:
To get started on your budget, you’ll need to work out how much you spend on:
1. Household bills
2. Living costs
3. Financial products (insurance…)
4. Family and friends (present…)
5. Travel (car costs, public transport…)
6. Leisure (holidays, sport, restaurants…)
Just grab as much information as you can about your income and spending (bills, bank
statements…) and get started. Alternatively, you can set up a budget using a spreadsheet or just
write it all down on paper.
If you’re spending more than you have coming in, you need to work out where you can cut back.
This could be as easy as making your lunch at home or cancelling a gym membership you don’t
use. You could also keep a spending diary and keep a note of everything you buy in a month. Or,
if you do most of your spending with a bank card, look at last month’s bank statement and work
out where your money is going.
Some people find it hard to get motivated about saving, but it’s often much easier if you set a
goal. Your first step is to have some emergency savings – money to fall back on if you have an
emergency, such as a boiler breakdown or if you can’t work for a while. The best way to save
money is to pay some money into a savings account every month. Once you’ve set aside your
emergency fund, possible savings goals to consider might include:
Be flexible
Life is unpredictable so try to review your budget and your spending if there’s a change, or at
least every couple of months. You might get a pay rise, which means you can save more, or you
might find your household bills increase.