How to Budget Better

Published by beemoneysavvy on

Setting a budget can help you to become more aware of your spending and critique your habits. You may notice that you’re spending money on things you don’t need, and not saving money where you can!

Follow these simple tips to budget better, spend less and save more!


Understand your Incomings ⬅

Do you know what you earn? Keeping a record of what’s coming in is really handy, not only for your own knowledge but also in cases where you’re asked to prove your income (e.g. when applying for a mortgage) or think that you may have been underpaid.

A super easy way to keep a record of your monthly earnings is by updating a monthly budget spreadsheet.


Know your Outgoings ➡

Tally up all the different bills you have to pay – not forgetting mortgage/rent, utilities, insurance, groceries, car payments, phone contracts, Internet/TV service, etc. Add them all up and make sure the money coming in is more than what’s going out… if it’s not, you’re going to need to find a way to reduce your outgoings!


Get Rid of Debt

Paying off existing debt is a priority! Pay the debts off before you save! Debts (usually) cost more than savings earn. For your wallets sake follow this simple steps to take back control over your debts…

Prioritise the most expensive debts (use any savings you have to pay these off)

Check to see if you can lower any of your debts’ interest rates.

Consider a balance transfer; with a balance transfer you get a new card to pay off debt, at 0% interest/a small fee – meaning that you have longer to pay off your debt without paying the added interest.

Look to earn some extra income; consider asking for more hours, getting a part time job, freelancing or research other extra income opportunities.


Reduce Non-essential Outgoings

Lets be honest – we all buy things we don’t need from time to time – but for budgets-sake you need to reduce it! Here’s what most people waste their money on (separated by generations). All three put the most unnecessary cash towards dining out…

Spending infographic

Looking for cheaper (or free) food alternatives may be one way to reduce your wasteful spending! But how much are you spending on ongoing contacts that you don’t need such as streaming services, entertainment packages, and gym memberships?

Bean LogoBean is a useful little tool that helped me with this! Bean is a website that tracks all your contacts; highlighting how much you spend on them & helping you to end contracts you don’t use anymore. They also have a niiiicee sign up offer of a £5 Amazon voucher after you’ve had an active account with them for 30 days!


Budget Tracking

Screenshot of Cleo
It may be a good idea to keep a record of small spends and extra earnings.
If you don’t want to do this manually, Cleo could be your new best friend! Cleo is an artificial intelligence money-managing assistant that can be accessed through Facebook Messenger, text message, Amazon Alexa or Google Assistant – you can ask it questions relevant to your account and spending habits, and receive instant feedback and advice (super helpful!).
As well as this you can set yourself a budget and Cleo will notify you when your spending is about to send you over your budget! Another perk to signing up with Cleo is the referral scheme. When you first sign up through someones link you’ll be rewarded with £2.50 (feel free to use mine here). After that, you’ll get your own unique link that you can share with others and if they sign up (and connect their bank account for more than 7 days) you’ll both get £2.50!

>> Sign up to Cleo <<


Open a Savings Account

If you’re in debt, I recommend paying off debts before looking into a savings account.

More often than not your bank will offer you a variety of savings accounts, it’s best to talk to your bank and find out which savings account will work best for you! If you like the idea of an ‘automatic savings account‘ then carry on reading.

Plum is an automatic savings account that analyses your transactions & identifies your regular income, rent, bills & daily spend. Using this data & other factors like your available balance, Plum’s smart algorithm calculates an affordable amount for you to save. 

Plum savings account

 Your savings are then invested at RateSetter; one of the biggest peer-to-peer lenders in the UK. Your 3% interest (on average) accrues for every day that your funds are on loan and is paid monthly as the borrower repays their loan. You always have access to your Plum savings and can withdraw at any time (always allow for 24 hours when withdrawing).

>> Sign up to Plum <<

Disclaimer: investing with RateSetter, you are lending your money to a number of people, some of which may not pay back their loans, meaning that your capital may be at risk!


Increase your Income with Side Hustles

There are tons of ways that you can earn some extra money on the side, I have a full list of these over on my ‘Side Hustles Page’. Click the link below to find a side hustle that works for you!

>> Extra Income Opportunities <<


Decrease your spending by Bee-ing Money Savvy

I’m constantly adding new articles to my blog that should help you save more money, but for some quick inspiration I’d recommend the following articles:

>> How to get Free Food <<

>> Earn £50 by Switching the Renewable Energy <<

>> Get £5 FREE and Cashback on your Supermarket Shop <<

>> Money Making Iphone Apps <<

>> Earn Money with Survey Sites <<


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3 Comments

krismadeablog · July 26, 2018 at 6:21 pm

Thanks, you’be provided some great information here.

Leanna · July 28, 2018 at 6:57 am

Great info! I know I have some debt I need to pay off and paying it off first before saving would be a smart move!

foundationsandfairytales · July 29, 2018 at 1:45 pm

This is a really helpful post! I always struggle with money towards the end of the month as I’m rubbish with budgeting and like to treat myself after payday! I also agree that millennials eat out a lot more than any other generation, I know I’m definitely guilty of this but want to try and limit myself to one takeaway/meal out a week to cut spending!

Jess // foundationsandfairytales.wordpress.com
xx

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