Budgeting

Personal budgeting a great way to make your money go further. It’s often a surprise to look at bank statements and see where all the money has gone at the end of the month. Setting a budget at the start of the month can allow more stability when it comes to making financial decisions.

How to plan your budget

A budget is a list of all the money you receive and all the things you spend money on every month.

Making a budget is the first step towards taking control of your finances and getting your situation back on track. Budgeting helps you to see where your money is going, so it’s easier to make sure that you’ve covered all of the things you need to pay for.

There are lots of free tools available online to help you create your budget, for example:

StepChange Debt Charity - How to create a personal budget

Step 1: Work out your total income
Step 2: Make a list of everything you spend each month
Step 3: Deduct the total amount you spend each month from your monthly income

Once you have deducted your spending from your income, if you’ve got any money left over you have a ‘budget surplus’. If you’re spending more money than you’ve got coming in you have a ‘budget deficit’.

Managing your expenses

Everything in life comes at a price. That’s why it’s important to make sure that you are reviewing your expenses regularly to make sure that you aren’t paying too much.

Information on reducing your spending

Managing your debts and borrowing

One of the most stressful arrears of personal finances is debt. Borrowing, taken out with the best of intentions can become a problem.

If you have debt but you are managing to pay it, you may still be able to save money. Transferring high interest debts to zero percent credit cards can save a substantial amount of money. The important thing is to ensure that you are paying as low an interest rate as possible.

If you are struggling with your debts, it is important to talk to someone who is a qualified in giving debt advice. The recommendation is to talk to an independent charity like StepChange. If you have already completed a budget, this will help them to assess the best way to manage your debts. There are a lot of solutions available so do not be afraid to get in touch.

Taking out finance

Whilst it is not always the best solution to take out finance, there are some points where it is unavoidable and even beneficial. You can get affordable credit from Cardiff and Vale Credit Union.