Budgeting

In its simplest form, a budget planner is a list of all your income and all your outgoings. Your income would be everything you gain money from including your job, investments or any other income.

Your outgoings should be all of your outgoings including monthly direct debits, any debt repayments and one off spends like an annual holiday or planned home improvement.

To create an accurate budget planner you’ll need to be honest with yourself. The easiest way to do this is by having access to your bank and credit card statement.

If you budget as a couple, it is a good idea to do this with your partner. Not only will that enable you to get an accurate spend but by working on this together, you’ll both know where you are financially and you can agree to both move towards the same goals.

The Money Advice Service have put together a handy budgeting tool that is simple and free to use.

This calculator will give you a breakdown of where you’re spending your money. Following that, you’ll receive personalised tips on how to reduce your spend, if it’s not already obvious from the results of the Budget planner.