When it comes to food we all know less food in more energy out equals weigh loss. Money management is similarly simple.You need stratergy and will power too! Okay, well here is a short and sweet call for action for family budgeting in 2012….
1. Know what your essential outgoings are in total each month. Estimate for petrol and shopping. Include minimum credit card repaymnets, loans etc. Write this amount down. This is your OUTGOINGS
2. Write your incoming money down for each month, include child benefits, etc. If there is an income that isn’t set go for an average. This is your INCOME.
3. Go back to OUTGOINGS …can you lose any? Charity donations? Gym memberships? Newspapers delivered or magazine subscriptions? Get rid of any you can.
4. Can you reduce any of your outgoings? Try and find out if its cheaper to pay by direct debit, shop around when it is time to renew, ask at your bank about considlidationg debts, use up leftovers, shop at a charity shops, etc. Be ruthless. If you need more a visual aid then this budget planner at http://www.debtadvisorycentre.co.uk/ could
Photo credit codepo8
5. How’s it going? Does income match outgoings yet? if not how can you boost income…a monthly car boot sale…a monthly cull for eBay? Do you need to take a part time job? Make your own gifts? Dye your own hair this month?
When income surpasses outgoings you are winning. Just keep working back through this list to keep yourself on track. Be honest and face money square on and aim always for
Income UP and Outgoings DOWN
Sounds simple right? Well it’s not really. It takes a change of habit, focus and some times challenging changes. But you can do without a lot of things you think you need and you need to REALLY go for it if you want to be fabulously thrifty and debt free.
Best of luck.