Category Archives: Budget

When the bills are piling up.

These days, budgeting really counts – for many of us, more than ever. The more strain your finances are under, the more important it is to make the best possible use of every penny.

The obvious place to start is by finding out where you stand: how much leeway you actually have in your monthly budget. Once you know that, you’ll be better able to figure out what to do next. (This article just takes a brief look at the subject – if you want to know more about bills, debts and budgeting, you might find this is an interesting bit of information.)

So, calculate what’s coming into your account every month. For most people, this isn’t too tricky, as we don’t have as much income coming in as we’d like to have!

Next, what’s going out? This is typically far more complicated, for all kinds of reasons – not just because we tend to spend our money on a wide range of things, but because they’ll vary from one month to the next, while some bills are paid monthly, quarterly, yearly…

If you’re carrying unsecured debts right now, you’ll need to know how much money you have available to go towards them once you’ve accounted for all your essential expenses. This figure’s called your disposable income – it’s the amount of money left over once you’ve paid for the things that you just can’t live without, from heating and eating to keeping a roof over your head.

At the end of the day, if you can afford all your essential costs and the cost of repaying your unsecured debts, it sounds like your finances are on track. If you’re in this kind of situation and the bills are still piling up, it could be that you just need to take a more rigorous approach to your budgeting.

You may even be able to overpay your debts – make more than the minimum required payment on a monthly basis to get them paid off more quickly and (potentially) save yourself a fair bit in interest. (Just make sure you’ve read the terms first – some debts will impose an Early Repayment Charge if you repay them more rapidly than you actually agreed to.)

Alternatively, you might find it makes more sense to save up for a rainy day instead. It depends on where you stand with your finances, what kind of debts you’re paying off, how much interest they’re charging you, how much interest you could get on your savings, whether it makes more sense to focus on overpaying your mortgage right now, what your future is likely to involve, etc.

If you can’t afford all your costs, the situation’s much more worrying. Unless you can find a way to cut down on your spending and/or increase your income, you may need to contact your lenders and arrange a new repayment plan of some sort. This isn’t always straightforward – so getting some debt advice is a good way to start.…

The Three Budgeting Catagorys YOU Need!

As a teenager budgeting is very simple; most people (I used to be the same) live under the perception that ‘I’m too young to have a budget’ or ‘I don’t need one’ when in reality having a budget is one of the best things you can do to ensure that you always have money and that you are working towards your financial goals!

If done realistic and appropriately budgeting is one of the most simple personal finance habits you can develop and it can be extremely pain free if you follow the advice outlined below. I try to split my budget into three Categories and add to it as and when needed. the three Catagories are below. P.S I always keep my savings and spending money in different bank accounts for boundaries and less confusion! 

Spending – this budgeting category can be literally be used for anything you want for money to ‘piss away’or money to go on your next big holiday. Spit As much money as you want into this category it’s usually recommended to put anywhere from 50-60% of your income into this as it’s important to remember that we need to live a little and remember that investing in experiences is possibly the best investment a young teenager can make.

Saving – this category Is used to store your income that you do not want to spend. I lit around 65% of my money into this. Your savings can be used for anything you want really however, personal finance books such as ‘Rich Dad, Poor Dad” tend to advice you to only buy invest able assets with your savings and anything that is not invest able should be bought with your spending budgeting category.

Investing – This category is the wealth builder. Over 90% of my current net worth is in invested assets. Currently my savings only buy assets I try not to use savings to buy luxury such as holidays as I personally see it as something that can be covered by my spending. The investing category includes anything such as bonds, stocks shares, gold, silver, equity!

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