What is a budget?

Unleash your inner accountant and become a budgeting pro with this simple go-to guide…

Budgeting unwrapped

Having a budget might sound scary/ geeky/ grown-up but if you want power over your pounds, it’s a good idea to start. It all comes down to two words: spending plan. Making a plan helps you monitor cash coming in and going out of your bank account each month. Once your spending is under control, you can plan ahead, maximise savings and avoid debt. Sounds good, right?

How it works

Once you get the hang of it budgeting can be super simple and convenient – even your gran can do it, so no excuses!

1. First estimate your incoming cash over the next month and assign a certain amount for each area. That’s essential outgoings like rent, food and bills. Then put aside a small portion of money to save. Luxuries come last: we’re talking beer, fancy clothes, takeaways etc.

2. Keep a spending diary and review at the end of every month. Did you stick to your budget? Or did you spend more than you earned? If so, time to cut back. Think cheaper booze, shopping at Primark, swapping getting your nails done for DIY gel manicures. We have tons of easy ways to save cash here.

Reap the rewards

Being the master of your money means no nasty surprises lurking round the corner. Yes we mean overdrafts and debts. To really benefit from budgeting and achieve a saving goal (awesome beach break, new car, iphone) always keep your end goal in mind. It’s easy to accept not having that extra pint when you know you’re saving for a new car.