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Making a budget
Debt won't go away and the longer you put it off the worse the debt gets.
Article by : SpunOut.ie
- A budget is a plan of the money you receive and how you expect to spend it.
- If you live with a partner you need to decide if you both budget your money independently or together. A joint budget can help make sure that you both pay a fair share of the bills.
- If you have problems planning a budget then download the budget sheet from MABS or make an appointment with your local MABS office. MABS will prepare a personal budget for you, free of charge.
- Talk to MABS about making up your budget.
- First, figure out what your total income is. This can be a salary from work, part-time earnings, student grant or student loan, scholarship, government benefits, savings or money from your parents.
- Make a list of all the money that you spend every week or every month. This needs to include rent, mortgage, loan payments, credit card payments, electricity, heating, phone bills, water rates, insurance, TV licence or rental, food shopping, travel costs, car insurance and tax, eating out, laundry, toiletries, sports, socialising and all other possible costs.
- Think carefully about the weeks or month ahead. Is there a birthday coming up? A long weekend when you plan to go on holiday? A big interview that you need new clothes for? A match or concert you want tickets for? Make sure to add all these expenses to your budget.
- Be realistic when writing out the budget. Don’t try to convince yourself that you can spend €20 on food when you normally spend €50.
- Add up your income and what you spend. Ideally you should be spending less than your income. If you’ve been having financial problems, seeing all your spending written down should tell you why.
- If you spend less than your income, well done! You can start saving the left over money for something you want.
- If you can afford it, try to have some savings kept aside for unexpected emergencies.
