Creating a Budget
If you’re reaching the end of each month worrying about not having enough money for the last few days and stressing about paying for the essentials, it might be time to switch up your budget.
Creating a budget is something which everyone should be doing, whether you’re getting some pocket money as a teenager or you are in a full-time job. Even as a teenager, budgeting is a good idea. We understand that you have fewer things to spend your money on and probably no bills to pay but, it will help you get into the swing of things in preparation for the future. When it comes down to creating a budget there are plenty of factors you need to consider and look at before you can come to a final decision. Here are our best examples:
You need to gather as much of your financial information as possible –
Before you can start any budgeting you need to be able to understand your incomings and outgoings, whether that be monthly or weekly. This could range anywhere from your bills to your weekly shop. The easiest thing you could do is get hold of a previous bank statement or check your online banking so you don’t miss anything. Therefore, you will be able to visually see everything that you are spending and where your money is going.
Separate your income and your outgoings into different sections –
There are plenty of budget planning methods on google images which you could either print off or copy so you can see in order what exactly comes in and leaves your account. Once you have done that you could separate everything into different categories. This will help as they won’t just be generic ones which could be confusing. They could be along the lines of bills, groceries, transport etc.
Choosing a budget plan –
Once you have worked out your outgoings, what they are spent on and how much they are. You can then choose a budgeting plan which you feel would suit you the best. One of our favourite plans is the 50/30/20 rule. This rule allows you to separate your income into three sections of essentials, wants and savings. This will give you a balance whilst managing to put some money in savings too. 50% of your income will go on essentials such as food and bills, 30% can go towards things you want, and lastly, 20% is saved. This is to help you build up savings whilst giving you the right balance to be able to live the life which suits you best.
If you stick to a specific plan, you should eventually find yourself in the right direction with the perfect balance of the money. Although, sometimes things in life occur which throw us off track, so if you ever find yourself in financial difficulty loans from lenders and brokers like PMLoans can really help.