1. MAKE AN INCOME AND EXPENDITURE ASSESSMENT
To manage your budget successfully, it is important to first make an assessment of your income and expenditure. This is a rather tedious task, but it will help you balance your budget in future.
Take time to look at and check your payslips, bank statements, bills and credit and debit card receipts.
Enter all of these details into the following table : manage my budget
You can divide your expenditure into 3 categories.
Regular and unavoidable expenditure (tax, insurance, rent, water and gas bills, loan repayments, internet or phone bills, etc.).
This includes everyday living expenses (food, toiletries, transport, etc.).
It is possible to reduce this expenditure to some extent, but not to cut down on it drastically. If you are on a tight budget, it is better to reduce your occasional expenditure.
These outgoings are less regular and the amounts spent more variable (clothes, leisure activities, holidays, improving your home, etc.).
They can often be deferred (leisure activities, holidays) but also need to be planned in advance, because they can involve very large amounts of money: work on the home, property purchase, travel.
2. DRAW UP A PROVISIONAL BUDGET
With the help of your provisional budget, you can plan your annual expenses and spread them out over the year.
This budget will serve as a guide for successfully monitoring your income and expenditure throughout the year.
Factor in the annual price increase.
3. MONITOR YOUR EXPENDITURE
This is a rather tedious process, but it will soon become a habit, and then be second nature.
Keep all your credit and debit card receipts, cheque stubs if you live in France, bills (cash till receipts, toll receipts, etc.). You should also keep a record of the amounts withdrawn from Bancomats for current expenses. Monitor your expenditure conscientiously, month by month.
4. INCLUDE SAVING IN YOUR BUDGET
With proper budget management, you should be able to save regularly. It is a good idea to open specific accounts to organise your finances: a savings plan, savings account or investment product will help differentiate between different types of savings.
Set yourself financial goals, and make a precise calculation of the amount you can save each month. In the event of a major setback, you will have peace of mind.
Don't forget that there are no good or bad savings options. There is bound to be a product that meets your financial objectives and your investment capacity.
5. MAKE YOUR INCOME AND EXPENDITURE ASSESSMENT AND GIVE YOURSELF A TREAT
At the end of the year, assess your income and expenditure and look at the months that have been a bit harder. This will allow you to spread out your expenses more effectively or better manage the money in your accounts to tide you over the financially most difficult months.
Don't forget to give yourself a treat, and spend some money from time to time on something special. Thanks to these tips on good budget management, you can plan ahead with peace of mind!