Money Stock photos by Vecteezy
Does it ever feel like your money exits your account almost as quick as it enters? If so, it’s time to start budgeting! Below, we will provide you with some top tips to ensure you can better manage your money…
MANAGING YOUR EXPENSES
Expenses (the cost required for goods and services) often lead to the feeling of money being drained from your bank account, especially if you are not prepared! Expenses can be split into 2 categories: Regular, and irregular. Regular expenses are those which you expect, such as your phone bill, and a weekly food shop. Irregular expenses however are more unexpected, take travel costs, or buying your friends a birthday gift for example. Sometimes these costs can be overwhelming, hence why you need to budget!
BUDGETING VS SAVING
Budgeting involves splitting money into different pots, to ensure you have enough money to cover your expenses. Start by separating your Needs and Wants. Make sure you have enough pocket money to cover your needs, before moving onto your wants. Another section of a budget involves stashing some money away into your savings! It’s a great way to start building up some money, either to establish an emergency fund, or to save up to buy something you have always wanted!
START BUDGETING NOW!
If your parents currently give you some pocket money, it’s easy to get some practice in budgeting! Ask them to pay you your allowance every 2 weeks, set up some different areas to assign your money into (don’t forget a savings pile!), and then stick to your budget!
Take a look at the Practical Money Skills site for more information on how to create a budget!
| Key Terms:
Regular Expense – Costs you are expecting to recieve, e.g. phone bill. Irregular Expense – Unexpected/infrequent costs, e.g. gifts, travel costs. Emergency Fund – Source of funds to cover you in case of irregular expenses. |
