Living on a budget

Ideas for controlling the spending.

If you end up wondering why there's so much month left at the end of the money try doing a detailed budget to find out where it all goes.

Start by keeping a note of everything you spend for a month. Chances are you'll be splashing the cash on all kinds of stuff you hadn't expected. Everybody's different, but you may find that you are spending more than you think on some items.

Next, make a list of all the things you need to pay for every month. Remember to include a realistic amount for entertainment and socialising, don't force yourself to live like a hermit.

A good tip is to add ten percent to your total expected outgoings. There are always unexpected extras such as birthdays, children’s shoes, or car repairs to pay for. This should allow for them, and smooth over the shock of any nasty surprises.

If the final amount you need to spend in an average month is more than you have coming in, have a look at the spending and see if you can make any economies (see Money Saving Tips). If you're lucky enough to have money left over, you can put some by each month for bigger items, provided you actually stick to your budget, of course.

If there is a large deficit in your budget each month you may need to seek advice about managing debt.