5 Best Budgeting Tips for 2020
When it comes to spending your hard-earned cash, not everyone knows how to spend some but also save some too. It can be hard to find the right balance. Every payday most people like to treat themselves with some fo their favourite things. This could be a luxury meal, a new coat or even a new gym membership. Spending money is done differently depending on each individual. But knowing how much to spend and how much to put away for the future is a fine line. So, let’s discover the 5 best budgeting tips for 2020 to help get your finances in check!
1. Write down any key purchases to come
Reviewing what large purchases you may be looking to buy for the year ahead is a great start to creating a budget. If you’re looking to buy a house and get a mortgage, knowing that you’ll have a monthly mortgage of £1,000 is great for arranging your other spends around. It can make you rethink, if buying that extra pair of shoes is needed this month or if it can wait a few months before purchasing them.
2. Review your income and outgoings
Before creating any sort of budget, it is always best to review what you spend your money on each month. If you spend more than you earn each month, then you could review if every purchase you’re making is vital. One of the best budgeting tips is making sure you’re earning money each money and that your expenditures aren’t more than your income. As that is where the problem begins!
3. Set yourself a realistic budget
As many people know, budgeting isn’t for everyone… However, is that because it isn’t attainable? If you’re someone who loves to spend £50 a week on food, cutting your budget down to spending £10 a week, could be unrealistic unless you make the necessary changes. Some ways to help could be by preparing your meals at home and instead of going to Sainsbury’s every lunchtime. So, rule #1 of the best budgeting tips is to make sure it is realistic and attainable!
4. Create an individual savings pot
Having a savings jar or something along the lines of a safe or piggy bank is always useful. Do you ever find loose change around the house that you have no idea where to put? Well, a money jar is a perfect place! Even though collecting 1p, 2p or even 5p coins doesn’t seem like much, they can all add up! If you manage to save up all your loose change, in a few months you could have at least £20, £30 or even £40+ saved up from all the loose change that you dismiss!
5. Plan for unexpected surprises
Unexpected bills or payments are the worst and can hit you when times are tough. So, the best way to stay ahead of any sticky situations is to plan in advance. Having spare savings can be a source of financial stability when you need it most. Be sure to set aside a lump sum of cash each month, just to avoid being in a predicament as such.
Related: Saving money in the easiest ways