According to the Office for National Statistics, average weekly spending in the UK rose by around 9% in the years between 2012 and 2019. The same office statistics show that food and housing make up around 42% of the average Briton’s spending. When you consider that there are a lot of additional expenses that an individual has to cover on a weekly and monthly basis, the importance of budgeting is cast squarely into the spotlight.
Now that budgeting is in the spotlight, it must be noted that it certainly isn’t easy. Most people have good intentions when drawing up a budget, but these often prove difficult to stick to, especially when a new pair of shoes goes on special, a friend’s birthday arrives out of the blue, or an unexpected emergency crops up.
Tips on Creating Person-Friendly Budgets
The trick to successful budgeting is to draw up a budget that is easy to stick to and allows some flexibility with your finances. Your budget needs to be “person friendly”. Below are 6 quick tips on how to do that.
Familiarise yourself with your actual income.
Most people spend money with their total salary in mind, instead of being realistic about how much money they actually “take home” after deductions and contributions. Make sure that you know what your salary is after all deductions – this is your actual income and all that you have available to spend.Continue Reading