Isabel Leverrier October 6, 2020 Budget
Go through your discretionary expenses and see if there is anything you could do without - eating out once a month instead of once a week, walking to work rather than using the car every day or taking a packed lunch instead of going to the café. If your budget calculator shows that you do not appear to be able to live within your budget, do not despair - there are steps you can take.
What I like to do now with this information is use it for the start of my budget. Now that you know where you are spending your money, you can develop some financial goals. Do you want to get out of debt? Do you want to save for a wonderful vacation? Do you want to save more for your retirement?
In the first instance, make a note of everything you spend - big and small - each day for a whole month. The first thing you wll notice is how all the little things actually add up to quite a lot over the course of a month. For example, it is estimated that the average worker will spend around £5 a day buying their lunch. And even taking into account weekends and holidays, that is an excessive amount of money every year on unnecessary lunchtime treats. By bringing in homemade lunches everyday it is possible to make considerable savings for a modest effort.
There are many different types of budget calculators to choose from when you are surfing online but probably the most popular is a mortgage estimator you will find on most home finance sites. The idea behind the home mortgage budget tool is to see how the monthly loan payments will work with your budget. By entering all your monthly income and expenses you can quickly see if the house and loan you are considering will fit into your financial plans.