Top tips to keep Track of your Money
Whether you are hear because you are looking for a loan or because you would like to know more about tracking your hard earned cash, LoanPig are here to help you.
Setting a budget is all about planning where your money is going, however, it’s just as important to understand where your money actually ends up each month. Getting to grips with how your money flows in and out of your bank account is the first step to getting your earnings in order.
Below we’ve listed our best budgeting tips to fast-track your way to financial freedom.
Track your Recent Statements
Pay day is a wonderful feeling, right? But all too often, that buzz of a freshly loaded bank account wears off and you’re counting down the days until it rolls round again.
If you’re finding yourself counting the pennies at the end of each month, go back through your statements and have a look to understand where you’re spending your hard-earned cash. What are your spending habits? Are there any patterns of note? While that odd posh coffee may seem like nothing at the time, just 3 of those a week and you’re spending almost £30 a month just on caffeine!
Create a Budget – and Stick to it
Once you’ve got your recent statements under control, take some time to map out your income and outgoings, down to the last penny. Include big things like monthly bills, as well as smaller, regular outgoings like parking, or that Netflix subscription. You’ll also want to include any savings here too.
Once you’ve got this written down, work out what you’ve got left to spend each month. This is your budget, and it’s now your job to stick to it.
A Good Way to Budget is by following the 50/30/20 rule.
No more than 50% of your earnings should go on basic living necessities, like rent and car payments.
Around 30% should go on the fun stuff, so days out, treats, shopping and holidays.
That last 20% ought to make it’s way (preferably by standing order) into your savings account, before you have a chance to touch it!
You’ll be surprised how quickly your savings mount up.
Gone are the days of meticulously storing your receipts.
Budgeting has gone digital – there are many apps now available to help track your spending. Simply download, set your budget and away you go. Some more sophisticated apps actually offer alerts when you’re overspending and can even sync with your bank account, so tracking becomes second nature.
Contact us if you have any questions about this and other articles, we welcome your comments.