Tuesday, 02nd June 2015
Whether you're already investing or planning to in the near future, a well put together budget is essential.
I liken a budget to the boy scout message: always be prepared (and you won't be disappointed!).
You may never have had a budget before and the whole concept seems foreign to you - don't despair, help is on its way!
My top 5 budget tips are as follows:
1. Be sure to include all of your anticipated income for the year, including wages, allowances (Family Tax Benefit, Pensions), share dividends and other income
2. Look at your tax returns over the past 5 years - have you received tax back? If so, average it out for that period and add it to your income
3. Be thorough when you add up your anticipated expenses - go through your bank records month by month and try to sift out regular from one-off expenses
4. Go through the one-off expenses and allow them an annual cost, then mark them on your budget as such
5. Keep a spending diary for one month - this allows you to focus on budget 'leakage', those little expenses which really can add up
Being honest about the state of your finances helps you plan for your investments.
It may sound hard, maybe even overwhelming, but imagine how much money you could save over the years just by being more aware of your spending habits…
It could even add up to an extra investment property - and imagine what sort of freedom that will buy?
Until next time,
From the desk of Christine