How to put a budget
What is your income? Get track of your income. It can be pay, pension, SU, unemployment benefits, cash benefits, child allowance, etc. Remember to deduct the tax, so you only count on the amount that you get access to in your account each month. If your income varies from month to month, then calculate the average and use the monthly income.
Manage your expenses
” Then you don’t end up standing in January with an empty bank account when all the bills are due.
Of course, the costs vary from person to person, and depending on where you are in life. If you are single, student and live for rent, or are you a family with small children and with your own home, then the expenses are not the same. Most importantly, you get control of all your expenses so you can get them into the budget. You can split your expenses into overheads, consumer spending and unforeseen expenses. The fixed costs will typically be:
- Rent / Mortgage
- Water, heat and electricity
- Internet and mobile
- Nursery / kindergarten
- Possibly. loans – consumer loans, car loans
Keep in mind there are some expenses, such as for example. license, insurance and tax which you do not pay per month. So remember to collect these and divide them by twelve, so you can put it on top of your ongoing monthly expenses. Then you do not end up standing in January with an empty bank account when all the bills are to be paid.
The more consumption-oriented expenses are typically clothes, cinema tours, restaurant visits holidays, etc. If you look at your latest account listings, you can see how much has gone for fun and trouble, and how much to spend on your future budget. This kind of spending is also the easiest to cut if the budget doesn’t last. Most of us also have extra expenses during the year, which should be taken into account in the budget. Here we are thinking, among other things, of birthday presents, Christmas gifts and any events.
Save up to the unforeseen
We all know the situation where the car must be in a workshop, the teeth must be fixed or something else unexpectedly comes behind us and not least our financial situation. Therefore, you should always save in your budget for unforeseen expenses.
If the unforeseen expenses exceed what you have on a savings or what is set aside in the budget, you may have to borrow money to pay the bills. Should this happen in anticipation, always make sure to investigate the market. You can save a lot of money getting quotes in several places and not just taking the first and the best. At Flora Finching we have made it easy for you. With only one loan application, offers from several banks, which you can easily and easily compare. So we save you having to make an application with each bank.
If everything is bottled and you are not hit by unforeseen expenses, you just have extra on the account that you can use for pleasure, for example, or if you have a loan, choose to pay off extraordinarily on the loan.
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