Lesson Two
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Lesson Two
On the Educ’ish website, we have provided a free template to use for your budget. If you are unsure what to put in and how to set it up, this template is a great place to start as it includes all the general basic items. Just edit all of the information to fit your requirements. Once your details are all listed you can start with the current month and put in the easy details such as your income.
If you are living with someone, it is essential you do the budget together as you will be sharing expenses. There can be a lot of disagreements over where money should go but it is a great way to build a trusting relationship, and you have to put the effort in to make it work!
You need to make sure it is all listed in the budget, even if you consider it a small cost. Every single cent you might spend in a month needs to have a category that it belongs to, this ensures you don’t get surprised at month end when the money you thought was there is gone.
Can be any money you receive within the month, obviously the more you have available the better for your budget and capabilities. But you need to be truthful about what money is available to be spent each month. It is best to use the exact amounts you see being paid into your account each month or the physical cash you have on hand.
Rent, Loans, credit repayments, debit orders, Monthly transfers, Charges and fees, allocations for living expenses any many more. There is no limit to the categories you can have, as long as you know you will spend money on it then it needs to have its own line under expenses. Each allocation for things such as petrol, groceries, clothing, and such are all estimates on what you think you will need to use within one month. As you use the budget each month you will get a better idea of the real amount you need going forward and you can adjust as needed.
A budget will never work if you are not honest about how you spend your money and how much you have available. Be truthful to yourself and as realistic as possible to ensure you meet the targets you are setting each month.
Put down all of the non-negotiable costs such as debit orders and credit repayments, then you can start adjusting the budget to fit your lifestyle. You may need to make some sacrifices in certain expenses such as clothing and spending habits to fit in all of your needs.
Each month can be different, and some items will change regularly. That is why it is best to set up the budget before each month. You can then amend the income and expenses to match what is going to change in the coming month. As long as it all balances out, you will give yourself a lot of confidence and reduce any financial stress that comes with these upcoming changes.
Make sure you have a category for entertainment and other pleasures you need in life to keep you happy. Whether that’s a coffee budget, sweet treat allocation or gaming money. It doesn’t matter what it is, but you need to have something to enjoy each month. We all need some relaxing time and what’s the point of working if you can’t enjoy some of your hard-earned cash!!!
What is considered a non-negotiable expense?
