The value of a Personal Financial Budget is that it will be easy to see how your future personal income stacks up against your expenses.
In some cases ‘Personal Budget’ can be a phrase that appears restrictive, limiting and confining. It can transmit a negative vibe to some a time to pull in the belt and live on bread and water.
But is that necessarily the case? Instead, flip that thought to view it as a spending plan. As with many habits, it’s a mindset. Think planning. Think how your hard-earned can be spent. Think positive and feel liberated. The ability to be able to spend guilt-free knowing that your expenses have already been covered and included in your plan. Each time that desire to buy tries to wrench more cash from your account, you’ll no longer feel like you’re going to run out of money before the end of the week or month.
How can you prepare your personal budget? Our spreadsheet can help it’s the easiest way to see where your cash is going and will even allow you to choose the focus of your spending and see instant results, going you the power to change the discretionary spends at will. You’ll be able to see in minutes how your progress is going. We’re so keen to join you in your journey to successful budgeting that we’ve now made this complimentary spreadsheet available to everyone, not just clients.
For best results ensure that your budget contains the following components:
- Income. In this part, include such items as your wages or salary, Interest earned and Rental income for example.
- Expenses. These should be split into key categories, mainly for easy tracking. Food, transport, mortgage or rent and some headlines, but the spreadsheet is flexible enough to accommodate all the categories you desire.
- Monthly cash summary. The ability to break down the above sections into months enables a flexible spending plan to be established, based on the figures in each column. The ability to analyse any excess spending in advance could prevent mounting future problems.
- Actual Vs Budget. Setting aside a short time every month to review and compare figures will provide you with a good mindset and habits for financial success and pre-empt potential failure.
Above all, being honest to yourself will give you the best benefits going forward. Keep in touch with your bank statements for best value. It’s sometimes an eye-opener, but it will help to understand where the money goes and allow adjustments to be made. Even small adjustments add up over time.
The best budgets are made personal to each individual and their circumstance, and viewed as a support document, not an instruction set. Using targets can be useful and following small bites and changes can work in your favour.
A key step in achieving financial goals and success is to understand where your money goes and to develop good systems and controls, ensuring you have a choice as to where you choose to spend and when. You can do this with a personal financial budget.
Planning your money and setting personal wealth goals will ultimately result in less stress and more wealth, particularly if a family is involved.
Contact us if you’d like a copy of our Personal Budgeting Template to develop your spending plans and financial future.
For a complimentary Discovery Call to discuss the most appropriate level of support on a wider basis, a personalised quote and a guarantee of our best possible service, please complete the form below and one of our senior advisors will contact you.
Or if you prefer, please call 01296 681341 for our Wingrave Bucks Accountants office.