Money Management Tristan on 05 Jan 2009 12:49 pm
Managing Monthly Outgoings And Household Budgeting
With the new year well and truly here, I’m sure there are many of us who have made new years resolutions such as:
Quit smoking, detox, lose weight, blah blah blah
The usual resolutions that in most cases won’t last until the end of January. If you are to make any new years resolutions, this year especially, it should be to manage your monthly outgoings, reducing them where possible, to ensure you are not overspening. What with the credit crunch affecting the availability of credit (though you should really ask yourself, is that such a bad thing?), and the economy in a worse state than Gazza on a night out, this year is going to be a tough one!
Now if you have a fairly stable job or business that provides you with a predictable income each month, then there is no reason why you can’t get through it. Yes, you will have to tighten your belts and watch what you spend your money on, but with a bit of careful consideration to your spending habits, there is no reason why it has to be a real struggle.
I have a monthly budget spreadsheet which I use to keep a track of my monthly outgoings. I find this useful, as it enables me to see how much disposable income I have each month to spend on whatever I like. Without knowing how much money is earmarked for important outgoings like rent, bills, debts, groceries etc, you can easily get into a mess with your finances.
If you make one new years resolution to stick to this year, commit to sorting your finances out, by monitoring your monthly outgoings, reviewing them to reduce them where possible and set your household budget so that you don’t overspend. If you do overspend, you may find things very difficult this year, as lenders are less and less willing to dish out easy credit, especially where the credit is to be used as a way of living beyond your means and overspending.
