Do You Need to Reduce Your Outgoings?
We live in a world where many people feel they are judged by what they 'have' rather than 'who' they are. From a young age, advertising bombards us with the latest fashion, the fastest cars and new electronic equipment and gadgets. Obtaining credit, in the form of unsecured loans, credit cards and store cards, has become increasingly easy. It is no surprise then that the average amount that people owe (or average debt per capita) has increased, and that more people find themselves 'overstretched' by their outgoings. It has become easier and easier to lose control of your finances - with the overriding message being one of spend and borrow, rather than save.
Are your outgoings overstretching you?
Try and identify areas of your spending where you could maybe cut back on spending.
With your budget in front of you see if the following plan might help:
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Put a mark against payments that cannot be changed e.g. your rent.
Look at bills or payments that could be reduced e.g. electricity, gas, telephone maybe could be reduced.
You may be able to negotiate lower mortgage and Remortgages payments or shop around for cheaper insurance.
Now consider how you might budget for essential weekly spending on groceries, housekeeping, clothing etc. you might find that keeping a daily spending diary for a short while useful as it will give you a clear idea of where your money is going and where you might be able to economise.
Look at other items such as entertainment. Although you might again decide to make cutbacks here, do try and leave room for a social life for you and your family.
Look at an amount in your budget that you need to put aside for dealing with unexpected expenses that may crop up or for education costs and so on.
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Too much or too little?
You should by now have completed your income and expenditure schedule.
You can now use your schedule to your benefit.
Benefits include:
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Having better control of your money
Making sure all your expenses are covered
A clear way of reviewing your expenses and making savings
A chance to plan for the future by saving some money
Building in contingency for unexpected expenses.
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