How to draw up your own budget
| Published date | 15 April 2024 |
| Publication title | Huddersfield Daily Examiner |
Bills for services such as council tax, water, mobile phones, broadband and stamps have jumped this month, causing headaches for lots of Brits.
Many of the biggest broadband firms raise prices every April, with comparison website Uswitch calculating that the increase will cost the individual consumer around £27.19 more a year for broadband and £24.23 for mobile bills on average.
Having a budget in place can help you gain a sense of control over your finances - and over a quarter (27%) of people say rising costs have actually prompted them to start budgeting, a poll for wealth manager RBC Brewin Dolphin in February reveals.
Carla Morris
When looking at what's stopping people creating a budget, 14% say they don't have the time, and one in 20 (5%) simply don't know how.
However, it might not be as complex as some might believe.
"Having a budget is the foundation stone of planning your household finances," says Carla Morris, financial planner at RBC Brewin Dolphin.
"It gives you a month-to-month breakdown of your income and outgoings, making it easier to manage your money, identifying where savings could be made, and giving you a clear view of how much you should be able to contribute towards long-term financial goals.
"It is worrying that so many households do not have one in place, particularly given the financial pressures many have been put under in the past few years."
Here, Carla shares top tips for getting on top of your budgeting… 1. Take it back to basics Carla says: "Coming up with a budget can be as simple as looking through what goes into your bank account every month, and what goes out. Make a budget work for you."
You can use software, or even just a notepad to write things down. "There is no right or wrong way to do it so long as you have the right information," Carla adds.
It's also worth seeing what free budgeting tools are available online. The Government-backed Money- Helper website has a budget planner page, while MONEYSAVINGEXPERT.com has a budget planner spreadsheet available.
It's important to be honest with yourself about your true financial situation when using budgeting tools, so make sure you are factoring in all of your spending.
2. Can you boost your income? If you regularly have more money going out than coming in, this could soon lead to problems.
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