Our Simple Guide to Money Management.

Set a Budget.

To begin, you need to know how much you spend on:

  • Household Bills
  • Living Costs
  • Financial Products (Insurances, Pension)
  • Family and Friends (treats, presents, gifts)
  • Travel (vehicle costs not included above, public transport)
  • Leisure (club costs, holidays, sport, eating out, takeaways)

It’s a good idea is to download a Budget Planner, there are many online.

Have fun – create a spreadsheet – you know you love them! You may not need dedicated software packages as most computers have perfectly adequate software preloaded.

Compare expenditure with income. If the expenditure is greater than money coming in – you need to do some trimming. If there is more income than costs – what are you doing with it – be honest.

Now the fun part!

When you have disposable income – make it real expenditure that cannot be compromised. This way, a regular savings plan or pension contribution does not end up being another takeaway or something frivolous.

Reviewing this exercise, comparing the market for better deals, and shopping around can increase your disposable income and be someone’s responsibility. Share the information, and everyone becomes involved and informed.

You will discover that household bills and your mortgage make up a big part of many budgets, so can transport. A little online searching can reveal tips and saving opportunities.

The need for an emergency fund.

It is unusual to have level expenditure, those months when all the birthdays seem to land or holidays tend to line up with certain times of the year (well, they used to). Property or car maintenance has a habit of coming out of ‘nowhere.’

An easily accessible cash deposit of about three or four months’ expenditure is a good amount to have on standby to smooth out those real life ups and downs.

Eamonn Dorling Dip PFS, Senior Independent Financial Adviser.

For help with Money Management, PensionsInvestment and Savings and Financial Planning, give us call us on 01733 314553 or email us at info@brookswealth.co.uk.