Do you often find yourself saying “I’ve no idea where the money goes”? Well you’re not alone. But it’s a sure sign you’re wasting money.
Our money expert Nick Hill talks about the importance of budgets.
Feeling you should have more money left at the end of the month, yet not being able to figure out where you spent it, is something we’ve all experienced. But that doesn’t mean it’s ok. The truth is you’re probably losing money every day by not being on top of what you spend.
There will be things you buy that you don’t even use. The odd couple of quid here and there might not seem much, but will quickly add up. Research from investment management firm Nutmeg found that those who do check their outgoings can save as much as £48 a month. So how do you make sure you’re not wasting that kind of money?
Start with a budget
Despite how daunting and dull it might sound, a budget is nothing more than a list of all your money coming in and all the money you spend.
With so many easy-to-use budgeting tools available online, it’s never been easier to stay on top of your finances, and see where you need to cut back if necessary.
The Money Advice Service has a budget planner tool that will quickly show you what’s left over after major bills are accounted for. While our Cut-back calculator will show you how small changes to your everyday spending habits can bring a big boost to your budget.
Give these tools a try. They won’t take long to fill in, and once it’s set up you can – and should – keep coming back to it to check how you’re doing. It’s all about getting in the habit of managing a budget.
As well as being able to see where you’re wasting money, you’ll also be able to avoid some nasty shocks. Finding you can’t get money out of a cash machine or having your card declined should be embarrassments of the past. Planning ahead will be far easier too.
If you want to kick start your finances, a budget really should be your priority.