Budgeting is the key. While most of us find budgeting hard work, it is absolutely essential. A budget is a plan of money you expect to receive each week or month, and how you expect to spend it. Your budget is important because it will show you:
• How much money is coming into your household
• How much money is going out, and what you are spending it on
• How much you can afford to offer to those you owe money to
Our Top Tips
Track – Keep track of your daily, weekly, monthly spending. Keep your receipts or take note of what you spend your money on. It will help you understand where your money is going, and it might just be an eye opener.
Budget – Estimate your income and expenditure for a set period eg.4 weeks or 1 month and budget accordingly. But be realistic and don’t underestimate!
Save – Get into the habit of saving. Try to save at least 10% of your regular income for extra spending and emergencies.
Be Prudent – Shop around and get the best deals on purchases, utilities and bills, and look at cost comparison websites.
Borrowing – There are times in our lives when we need extra funds. If you have to take out a loan, be sure you only borrow what you can comfortably afford to repay. You should match the repayment term to the purpose of the loan i.e. don’t pay off Christmas loans over a number of years. Borrowing from your Credit Union, you will make affordable repayments, you will continue to save as you pay back your loan.
