A Budget Example – To Help You Build Your Own

A Budget Example – To Help You Build Your Own

Back in the day, our grandparents (depending on your generation) got their pay packets and budgeted by dropping coins into a tin box split into sections for bills to help keep the roof over their heads until the next payday. Although times have evolved (hello digital banking)  the concept of budgeting is still prevalent as ever and understandably so. Its helps us achieve long term goals and helps us with our rainy day needs.

 

In today’s world we are far from the simplicity of the past and it can be difficult to keep track of bills coming out, direct debits, surprise breakdowns/replacements, wedding invites, birthday presents, subscriptions. The list goes on. So how do we keep ahead? The key is to start simple. Your budget needs will change as your life does so keeping yourself to a basic template which you can build out depending on what phase your life is at is the secret.

 

We will all have different budget requirements, here’s a simple budget example breakdown

• Housing – Rent/Mortgage

This is usually the larger part of our budgets unless you have been fortunate to pay off your mortgage. One way to decrease our housing budget is to move to smaller/lower priced accommodation without our transport needs outweighing the benefit of moving.

 

• Utilities – Gas/Electricity/Water

When it comes to utilities, the key usually is to shop around. In the current climate this needs more attention to whether it actually benefits in the long run and at the moment the advice we are seeing suggests switching isn’t greatly beneficial right now.

 

• Food – Meals/Treats

Food budgeting is an easy one to spiral, especially if you are tired on a food shop. Keep those food cupboards efficient and purchase food  you are planning to use.

 

Setting time aside in your routine to plan your meals and your shop is one of the quick wins here. Making sure you check use by dates of your purchases and plan the meals in order to when items are expiring avoids unnecessary wastage. Review treats, an innocent coffee in the morning commuting can easily add up

 

• Transport

Whether you own a car or commute there are still opportunities to reduce costs here. Shopping around for car insurance, or changing parts of your route to a walk rather than the tube or bus are potential cost savers here.

 

• Home Additions -Land line/Mobile/ Internet/Subscription Services (Netflix)/Insurances

Its important to keep track of all those subscriptions and direct debits on your bank statements. Make sure you know what they are all paying for. Again shop around for providers.

 

• Pets – Food/Toys/Day care

If you have one of these you will be familiar with how quickly these can run through any spare cash you have. Keep a track of your monthly food outgoings along with any medications and regular toy purchasing or bed replacing.

 

• Self-Care – Toiletries/Gym/Hair Cuts/Hobbies/clothes/dentist

Don’t forget  to keep a slot in your budget for you.  Again these are also things that can quickly add up and lose track of.

 

• Special Events – Birthdays/Weddings/Gifts/Holidays

Don’t forget to keep a space in your monthly budget for special events and trips. These are things that can suddenly sneak up even if they happen every year!

 

Future – Savings/Life insurance/Retirement

• Building up the monthly pot for retirement could mean you may even be able to retire earlier!

 

So there you have it. A top line budget example plan. As I mentioned we all will have different budget requirements and these will flex and change at different chapters of our lives. If you’re new to budgeting its good to keep it top line simple to start. You can then start to break down the categories into more complex saving divisions depending on your budgeting needs. For example Transport can break down to car then car tax, mot, gas etc and from there you can continue to review what needs to adapt to meet your budgets.

 

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