DO YOU FREQUENTLY END (OR START!) THE MONTH WITH NO MONEY? IF SO, PERHAPS YOU NEED HELP WITH YOUR PERSONAL OR HOUSEHOLD BUDGETING.
It’s not uncommon for people from all backgrounds – even those who are responsible for balancing phenomenal amounts of income and expenditure in a business environment – to frequently find themselves short of cash in their own lives, or worse still, have absolutely no idea what they need on a month-by-month basis.
Why is this?
Well, it’s because money can be scary. It’s great when you have it, terrible when you don’t, and something that you can avoid having to think about in too much detail when things are just ticking along. This is where most people get themselves into trouble though.
I’M DOING OK. WHY DO I NEED TO BUDGET?
You’re doing OK – that’s great, but is it through planning or just good luck? Luck inevitably runs out and virtually all of us will be faced with unexpected expenses just around the corner at some point in our lives. The question though, is whether they will be crippling, or just a minor annoyance. This is where budgeting comes in.
Household budgeting does not just apply to those looking after the day-to-day running of a home – it applies to everyone who has to manage personal finances outside of the workplace and in their own lives.
HOW MUCH ARE YOU REALLY SPENDING?
One of the classic questions that can catch people out is ‘how much does a pint of milk cost? Or a loaf of bread?’. You might have a rough idea, but do you actually know the true figure? These are traditional everyday items. While these products are thankfully quite affordable for most, it’s easy to start taking the same approach with other ‘essential’ items. You need to pay for your gas, electricity and water, for example, so it’s on a Direct Debit and that’s that. Again though, do you know how much those payments are, or do you just have a rough idea? Think about Direct Debits in general:
Do you know the exact, total figure that comes out of your bank account each month?
A magazine subscription or two isn’t that expensive, nor is the monthly unlimited cinema fee, or the gym membership that you barely use. We’re not suggesting that you get rid of these things – far from it, life should be enjoyed! But you do need to be aware of them and you should really know what they all add up to.
DON’T LET FEAR HOLD YOU BACK
Fear prevents so much enjoyment in life, but fear of the unknown is perhaps one of the most pointless and cruel killers of dreams there is. Examining your finances isn’t something that has to scare you. Why can’t it be something that liberates you instead? We use detailed financial forecasting software to project where you are headed and you may well realise you have more spare cash that you thought – it’s just that a few payments coming out on odd dates makes it appear otherwise. Even if you are shocked by how much you need each month though, that’s fine. By getting on top of your expenses you can start to consider how you can budget better and save more money towards the things you really do want.
We are not about holding you back, we are about putting you in a position to move forward, gain control and enjoy life.
Stop being scared of the unknown and start enjoying life without worry. If you need help or advice, please just get in touch.
This article does not constitute financial advice and should not be construed as such.