Budgeting Made Easy

With one person being declared bankrupt or insolvent every 4.35 minutes, now is the time for people to regain control over their financial situation once more. Isn’t it?

With one person being declared bankrupt or insolvent every 4.35 minutes, now is the time for people to regain control over their financial situation once more. Isn’t it?

Today’s economic climate means that pay rises, bonuses and overtime are no longer sufficient to keep up with inflation. Learning to allow your income to rule your lifestyle, rather than your lifestyle ruling your income, is key to survival in the never ending credit crunch.

At the end of the day, we all want things we can’t afford and often give in to desire, purchasing on credit in order to satisfy our retail needs and lifestyle improvements. This is always done with the best of intentions of buy now, pay later, but paying later can sometimes be unachievable if budgeting is not a skill you take seriously.

However, if we all adopt a more realistic approach to differentiating between monthly essentials and luxuries, then our finances will become easier to manage and making ends meet each month will become achievable without breaking out into a sweat.

The key is – to budget effectively and honestly, based on your realistic expenditure against what you bring in each month.

This is a much needed exercise. With the average household debt in the UK reaching £9,240 (excluding mortgages) and one property repossessed every 10 minutes, it must be time to return to the old ways our parents and grandparents were brought up, and budget sensibly. Through our Budget Blogs, I hope to continue in my quest to get more people on the budgeting bandwagon and help them on the road to recovery and sensible thinking.

It would be great if readers could also post their thoughts on the blog entries and share any money saving tips they might have. This is just the first of a series of Budget Blogs we’re issuing and over time, we hope to build up a variety of useful tips. Whilst we get to work on our next entry, send in any subjects you’d like us to tackle and we’ll do our best to take on the challenge!

So to start the ball rolling,

Tip number one:
Save every receipt for the next month and then tally it at the end to really discover how much you’re spending, where and why. You can then start eliminating the essentials from the luxuries…come on now, how many costa coffee trips do we all need when we actually have a kettle at home?!

Dave H
The BudgetMaster and Guest Author on ClearCash

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Comments:1

  1. Budgeting is extremely important in any business. It will determine a lot of factors which may affect long and short-term decisions.

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