Homepage > Money > Debt > Budgeting

• Are you good with money?
• Bills, bills, bills
• Calculating your budget
• Outgoings
• Income
• My outgoings are more then my income

Are you good with money?

Trying not to spend all your money is good, but do you think about how you spend your money or where you could save money? Budgeting can help you cut out unnecessary spending and expenses and prevent you from running up big debts. 

Bills, bills, bills

 If you are supporting yourself for the first time, or you have started university then you will need to think about the costs involved. It is a good idea to budget yourself for the month rather then a year as this is more manageable. This way you can work out exactly how much money you will have to enjoy yourself. You will be surprised by how much of your budget will go on bills and food.

Calculating your budget

To calculate your budget you need to make a list of all your outgoings  over the month and note down the average amount that you are spending. You need to do the same for your income. Total up your outgoings and compare them to your total income. If your outgoings are more than your income you need to decide what outgoings are non essential, such as that extra trip to the cinema or the bowling alley. Decrease your budget for your non essentials and keep re-calculating until your outgoings are less then your income. If you have money left over you need to decide how much of this you want to spend and how much you would like to save.

Outgoings

Your outgoings might include:

• Rent
• Food and drink
• Phone bill
• Internet bill
• TV license
• Car bills/loans
• Electric/heating bills
• Council tax
• Travel
• Gym membership
• Leisure activities (e.g. cinema trips, eating out, buying clothes, books, music)
• General repairs and maintenance

Income

Your income may include:

• Wages or salary
• Benefits
• Other (e.g. money from parents)

My outgoings are more than my income

If your outgoings are more then your income and you can’t reduce your non essential spending anymore, you need to think about other sources of income such as a part-time job or a second job. Find out if you are entitled to receive any benefits. Our section on debt gives you further information and advice. Visit your local Connexions Centre and speak to one of our trained Personal Advisers for more help and support.

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