Practical Budgeting Tips to Help Manage Your Money
Money worries can be about more than your finances
We’re all being that little bit more cautious with our spending at the moment. Costs are rising and things are expensive, so it’s understandable if you’re feeling worried or overwhelmed!
Budgeting can be a really helpful way to take control of your finances, giving you more peace of mind. Once you are clear on your budget, you’ll be able to understand where you might need to adjust your spending or even identify opportunities to save.
Whether you budget on a regular basis or need to start from scratch, check out these top tips from Danske Bank to help you budget more effectively, and remember, if you are experiencing poor mental health as a result of money worries speak to AWARE NI.
Tip 1: Use a Budget Calculator to understand your spending
Using a budget calculator, can help you review your spending. Doing this on a regular basis can help you to budget more effectively, help you determine any unnecessary costs and if you have money left over, to understand how much could be put aside for any unexpected events which might arise in the future.
Tip 2: Prioritise your essential expenses
Focus on the essentials first — those include groceries, housing, transport and childcare costs. Identify unnecessary expenses and subscriptions that could be cancelled – like paid-for TV packages, music subscriptions and unused gym memberships.
Remember to check your contract before cancelling anything. Although many subscriptions are 'pay as you go', you may be tied in for a set time.
Tip 3: Change regular payments to match your payday
This simple change can make a big difference. If you can get your regular payments such as rent, mortgage, car insurance or phone bill to come out of your account the day you get paid, then it’s much easier to budget with what’s left.
To change the date of a Direct Debit, speak to the company that set it up. You may not be able to get it exactly on the date you want, but the closer to payday the better.
Tip 4: Save a manageable amount each month
If you can, try to save a realistic amount every month for emergencies. Set up a standing order so it leaves your account without you thinking about it. Set an overall savings goal to keep you focused.
Lots of us are feeling the impact of the increased cost of living. If you have a money concern, Danske Bank have practical ways to help. Visit the Danske Money Worries Hub for more tips & tools to help you stay in control of your finances.
Money worries can be about more than your finances. Help is available from independent organisations - from free debt advice, to mental health support from Aware NI and more.