It can be tricky juggling your finances, especially if you have a family to budget for. Which is why we’ve gathered together the best tips to save money all in one place – just read on to learn how save money throughout the year.
How to Budget & Save
One of the best ways to save money is to create a family budget, and it’s easier than you think. Here’s how:
- Keep a spending diary for a month. Use a spare notebook and write down every purchase you make during the month, including card payments and cheques.
- At the end of the month, categorise your spending. Use subheadings like rent, utilities, entertainment, food, travel, and so on. This will help you see where you spend the most and identify areas where you might be able to cut back.
- Compare the total spend to your monthly income. This will determine whether you are living beyond your means. Bear in mind some months are more expensive than others!
- Make a list of annual expenditures. Write the months of the year on a sheet of paper and enter the dates and amounts of annual payments or periods of heavy expenditure – like Christmas – for the previous year.
- Work out how much you should be saving each month. Divide the large annual payments by 12 to get the average amount extra you should be saving per month. Don’t forget to anticipate any future large payments – like holidays – that are not on your list.
Tips to Save Money – Sticking to Your Budget
There’s no point in making a budget if it’s not realistic or you have no intention of keeping to it! Here are some helpful suggestions of how to keep family costs down and better manage your money.
- Round up all your figures. When you make your budget or are recording how much you’ve spent be sure to round up to the nearest ten. This way you’ll be building yourself a small cushion of money without even knowing it. This will help, if costs come-in higher than you anticipate.