It’s so easy to spend, spend, spend but do you know how much can you spend before falling into debt? Do you know what your income is compared with your expenses? We take a look at why you need to make a budget.
Quite simply if you spend more than you can afford you will quickly end up with debt problems.
Quite simply you need to make a budget to help you manage your money more effectively.
A budget helps you to control your personal finance – you can easily see what money you have coming in and where the money is going out to each month.
If you are struggling with debt problems, making a budget will help show you how much you can offer to your creditors.
You may be a serial spender, like to go shopping to cheer yourself up or simply need to have the latest ‘must have’ gadget. But the spending needs to be managed.
There really is no point getting yourself into financial difficulty as a result of letting your spending get out of control. Make a budget that includes some ‘me expenses’ and then you know what you can and cannot spend on those designer clothes, kindle, smartphone etc.
As long as the ‘me expenses’ sit alongside ‘must have’ expenses and all these expenses add up to less than your income then your money management should be fine – if the expenses exceed the income then of course you will need to reassess your expenses and keep doing so until your budget balances.
Whilst having a budget may seem difficult, it really isn’t. There’s lots of help available, for example on the Government moneymadeclear website and here on MoneyHighStreet, as well as money management software to use to record your financial transactions.
And don’t Forget
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