decided to redevelop the South Bank of your life, you need to finance the work
and the door to good finance is a budget, and for me a simple budget is best.
a simple budget keep all your bills and receipts for a month then sort them
into three groups:
- In the
first group place all your fixed expenses; rent, loan repayments, utilities
bills and any other expense that is constant month to month. - In the
second group place all the essential but variable expenses; groceries, gas,
clothes etc. - The third
group gets everything else, and it should all be non-essential items.
- Calculate
the total amount for each group and write them down.
Add the
three figures together and subtract it from your monthly income. If the total
expenses are greater than your income you need to start making some changes to
your buying habits as your first South Bank Project.
Calculate
ten percent of your income and deposit that amount into your savings account
when you cash your pay check. If your employer uses direct deposits, set up an
automatic transfer to your savings account.
Set aside
an amount equal to your first group total plus an extra 10 percent every month
and use it to pay only those bills. Over time you should build a surplus to cover increased power bills in winter or an unexpected increase in your rent. The rest of your income is available for your
every day expenses and those South Bank Projects. Take time to prioritize your purchases and decide where you can make savings to fund the new projects you have planned.