It has always
been an issue in many economies and the UK is not exempt from the fact that
many individuals struggle with managing their finances and ensuring that their
cash flows are managed adequately.
been an issue in many economies and the UK is not exempt from the fact that
many individuals struggle with managing their finances and ensuring that their
cash flows are managed adequately.
One of the
first issues to address will be the simple principle of self discipline. Self-discipline in being able to manage a
budget and the second principle will be being able to
first issues to address will be the simple principle of self discipline. Self-discipline in being able to manage a
budget and the second principle will be being able to
set up a budget.
A budget is a
set plan on how much will need to be spent on every form of expense that you
may be involved in and checking this against the expected income for the
period. A personal budget can be set for each week so that it is easier to
monitor and assess how successfully you were able to manage to stick to the set
budget.
set plan on how much will need to be spent on every form of expense that you
may be involved in and checking this against the expected income for the
period. A personal budget can be set for each week so that it is easier to
monitor and assess how successfully you were able to manage to stick to the set
budget.
A simple
template for a personal budget can be as follows;
template for a personal budget can be as follows;
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MONTH 1
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WEEK 1
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WEEK 2
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WEEK 3
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WEEK 4
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TOTALS
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INCOME
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EXPENSES:
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Rent/ Mortgage
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Utilities
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Travel
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Insurance
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Meals & lunch
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Total expenses
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Surplus
(Income minus expenses)
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You will have
to set out amounts for weekly income and then itemise and estimate how much
will be spent on your known expenses per week and then make some provision for
any unknown expenses.
You have to
attempt to make sure that the income is more than the expenses and that there
is at least 10% – 20% surplus at the end of each week. This will help you leave
some room for any unplanned expenses or it will also help you to get into the
habit of saving some of your excess income.
attempt to make sure that the income is more than the expenses and that there
is at least 10% – 20% surplus at the end of each week. This will help you leave
some room for any unplanned expenses or it will also help you to get into the
habit of saving some of your excess income.
If there is
no surplus initially, you will need to set up a plan on to start reducing your
expenses gradually or increasing your income but keeping the expenses at the
same or reduced level, so that over a set period of time, you will
realistically be able to set out your expenses to be less than your income and
then you need the self discipline to follow the set plan and budget.
no surplus initially, you will need to set up a plan on to start reducing your
expenses gradually or increasing your income but keeping the expenses at the
same or reduced level, so that over a set period of time, you will
realistically be able to set out your expenses to be less than your income and
then you need the self discipline to follow the set plan and budget.
Your Sincerely,
The Friendly Team
The Training Place of Excellence Limited