BUDGET LIKE A BOSS!

BUDGETING – Something I am very very in to. Whether I always follow my budget plan well – probably not – but hey, that’s life haha.

So today’s post is all about budgeting better and it’s dead simple really – but a lot of the time, it’s putting it in to practise that’s hard. I myself try to budget monthly and I will say overall I am managing my money MUCH better than when I didn’t have a budget and just spent as I pleased.

With payday drawing near I felt it was a good time to share how I budget and hopefully you can start putting some things in to practise once you get paid! (counting down the days right now)

Step 1: Set aside time to budget

For me it’s usually the 28th/29th of the month. I get paid on the 27th so I always try to have this time near to the date and write it in my diary (it’s important after all). You will do all of the below within this time.

Step 2: Look at your income and outgoings.

Most people will have an idea of their monthly income but for people who do shift work – work out how much you should be getting that month. I have a list of all my outgoings for every month so for example my phone contract, gym, car finance etc. Look at your bank statements to do this if you don’t know already. Write it all down and you should usually have a set amount that goes out every month. I always subtract this immediately from my monthly wage as it will eventually be coming out at some point in the month.

Step 3: Try and have all your direct debits going out on the same day.

For me, it just makes life easier. If I know that this set amount comes out every month – it just helps if it comes out at the same time so you really can keep track of whats going out each month. I have set all my direct debits for the 1st of each month so I know after the first, the rest of the money will only move on my accord haha.

Step 4: Have a weekly budget.

This will be different for everyone but what I do is give myself a set amount each week for food, petrol and all other expenditure which I might need to get by. If you have a house, factor in your weekly food shop etc. For me, it’s a little easier as I live at home so I typically give myself £50 a week and there will be weeks I need more (more often than not), but it all ends up being controlled because…

Step 5: Take the weekly budget out in cash.

As soon as I get paid, I take £200 out for the month for my expenditure (£50 a week). I know a lot of people feel they tend to spend more if they have it in cash and this may seem really anal but keeping envelopes can really help. So I used to (when I found it hard to manage £50 a week cos I always overspent) keep 4 envelopes for each week. If you keep the envelopes at home, you are more likely not to spend it till that week. Knowing you only have that certain amount of money in your purse/wallet that week can really help in keeping you disciplined and sometimes if you have some money left over that week – YOU HAVE MORE FOR THE NEXT, YAY. I now just keep the rest of the weeks money in a separate compartment in my purse as I don’t check it often. If you are always going over your weekly allowance – review this and increase your weekly budget (within your means obv).

Step 6: Factor in any extra expenditure for the month.

So again, I do all of this the time I sit down to do my monthly budget. Birthdays, anniversaries, shopping trips, birthday meals out etc. Look at how much each one will roughly cost you (I usually have an upper limit) and again when you go shopping for this stuff – stick to your limit, because that’s the only way you’ll remain within the monthly plan/budget you have.

Step 7: Savings.

So every single month I have a certain amount which I save. I take it out in cash and give it to my dad believe it or not just so I DON’T DIP IN TO IT, haha. When I had a savings account i’d always move it back across hahaha. No matter how much you can save – even if it’s £20 a month, try and factor this in to your monthly budget and the day you get paid – make sure that saving is put away straight away. I actually put my monthly savings down as one of my “direct debits” because it’s something that needs to come out straight away and put to the side. When I worked part time this only used to be £50 and now it’s a lot more but either way if you’re putting something aside, you’ll feel better in yourself.

Step 8: Extra money.

On the side of my therapy, I work as a bank staff member for my old job (support worker) so depending on how many shifts I do, I can sometimes get a bit of extra money a month. Because I usually know when I have these shifts, I factor this extra income in to my monthly budget and as soon as I get paid it – IT GOES STRAIGHT IN TO MY SAVINGS ACCOUNT. As you usually get a similar amount monthly, your budget should accommodate for your essentials and any extra money should be saved in my opinion. Next month, I am paying my car insurance with this extra money I have earned and I paid for my whole trip to Thailand with the same. It just makes it easier if you have any big expenditure, without dipping in to your monthly income. Similarly, the night before you get paid, if there is anything left over in your account – put it straight in to your savings.

Step 9: That extra unplanned expenditure.

Every single month I buy a nice piece of clothing I don’t need or go out for an unplanned meal which makes me go way over my weekly budget but if you have sorted your budget out at the start of the month you usually have enough in your account after of all your income/outgoings to not be worried to do these things. I usually spend on my card for any of these extras so I can keep a track of it all and I will usually again, add this in to my monthly budget I made at the start of the month so I am still managing the money I have.

Step 10: Always give yourself back what’s owed.

So for example, if you dipped in to your savings by £20 for whatever reason, the next month as soon as you get paid, put that back in to your savings.

Step 11: Review your budget throughout the month.

There are some months where you will overspend or not keep track so ensure at  some point through the month you review your account – how much you have left till payday and again, how you’re going to manage with any outgoing and essentials. Reviewing the process is vital sometimes to get you back on track and make you feel in control again!

I genuinely do this monthly guys and it just makes me feel better knowing I am tracking it as I go along. I usually only spend things in cash just so my bank balance has around 10-15 outgoings only a month – all of which I know and can keep track off (either dd’s, money I have withdrawn or that extra expenditure I am aware of).

I know it’s a little tedious/anal but it helps me stay organised and on top of things. I am very much a pen and paper girl too so if you don’t like writing stuff – do it on your phone or computer. If you find it mega difficult, invest in a money planner – a great way of keeping things organised.

So there you have it – my monthly budgeting plan, and as I said, I genuinely have saved money better than ever before and don’t lose control from just spending aimlessly on my card without knowing what’s actually going out.

I hope you found this useful and if you have any good tips, let me know!

Till next week,

Tayyeba xxxxx