WHY BUDGET PLAN?

The reasoning behind budget planning is that you save your money for things you really want and who will actually be useful to you. Money has become so digital with credit cards, debits cards but now even more with contactless and Apple Pay which makes it so easy to spend without even noticing the total amount. I became aware of that when I first started living on my own and was responsible for managing my money. I didn’t understand why not more money was left at the end of the month. I then stumbled on a few YouTube videos which explained how to manage your money so I started budget planning. I discovered how much money I was spending on completely useless things, it’s usually on a lot of inexpensive things rather than one or two expensive things. If you budget plan you will be able to see exactly which areas you are spending most of your money on and how you can cut back on certain things to save up.

HOW TO DO IT?

There is quite a lot of different ways to budget plan but I’m going to talk about the method that I have been using.  I started off by at the end of every month sitting down and looking at my expenses. For this I use an excel timetable where I write down the fix costs (the costs that are always the same every month for e.g: TV licensing, phone, oyster card etc…).  I then decided on categories to organise the rest, this will vary depending on your needs. My categories are food, clothes, beauty, travel, leisure and others. I then proceed to add up how much money I spent that month for each categories and write it down on my excel table. You can then subtract to the amounts of money you are getting each month your fix cost added to the rest of the categories. You will see how much you have left each month. I would do this for perhaps one or two month so you can get an estimate of your spendings.

The second part is to budget. You can look at your excel table and decide which categories you could cut down on the spendings. Some few ways I use to cut down is for example taking public transport as much as I can because even though uber might be a few pounds when it’s added up each month it can become expensive, another way for ladies is to not go to a nail salon and start doing your own nails, there’s so many way to save money. The categories I noticed I was spending way too much was makeup and I have since then massively cut down. Once you made your cuts, you can calculate an estimate of how much you should spend in each categories according to how much you want to save up. You can then plan how much you want to put towards your saving and how much you want to put towards what you’re budgeting for (a vacation, a car, a bag etc…). One point I always try to not forget is not be overly strict with my spending because I think that develops an unhealthy relationship with money so I don’t restrain myself from enjoying a few things here and there but I’m still always in control of my money. Hope this helps xxx

WHAT I'M WEARING

Pants: ASOS here

Blazer: Missguided here

Turtleneck: ASOS here

Shoes: New Look

Bag: Diorama in Medium

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