Budgeting – a key part of your financial well-being

If you are worrying about your finances during this difficult time, you’re certainly not alone. A good way of gaining a better understanding of your current financial position is to sit down and list your household’s current income and expenditure – remember this is likely to have changed as a result of the coronavirus pandemic.

There is a simple way of managing your finances. Creating a budget will help you get a grip on your income and outgoings, giving you a better understanding of where you could be overspending. You might be shocked to find how much you’ve been spending on takeaway coffees or lunch at work each month!

If you’re losing sleep over your finances, then our easy budget checklist is the perfect way to get started and boost your financial well-being.

TOP TIPS

Start with the important things

Make sure you’ve got your basic needs covered before budgeting for days out or new clothes, for example. Once you know you’ve got enough to keep warm, well fed and a roof over your head, and calculated what you can afford to save, you can budget for some of the more fun things in life, remembering not to neglect savings and pension contributions.

Adjust your budget each month

No month is ever the same and some can be much more expensive than others. Your budget is there to be adjusted, so that you can put more money aside during less expensive months. That way, you can afford to splurge out on events like Christmas, birthdays and holidays without worrying.

Where can you cut costs?

Look at your outgoings – are there any items you can reduce or eliminate?

Income (monthly)

Wages/salary £ ……………………..

Wages/salary (partner) £ ……………………..

Benefits £ ……………………..

Money from other sources £ ……………………..

Other £ ……………………..

Total income £ ……………………..

Outgoings (monthly)

Mortgage/rent £ ……………………..

Ground rent/service charges £ ……………………..

Buildings/contents insurance £ ……………………..

Life insurance £ ……………………..

Pension contributions £ ……………………..

Savings £ ……………………..

Council Tax £ ……………………..

Gas £ ……………………..

Electricity £ ……………………..

Water £ ……………………..

Food/housekeeping £ ……………………..

Travel (including car/petrol costs) £ ……………………..

Phone £ ……………………..

TV licence/rental £ ……………………..

Clothing £ ……………………..

Prescriptions/health costs £ ……………………..

Subscriptions £ ……………………..

Entertainment/eating out £ ……………………..

Other £ ……………………..

Total outgoings £ ……………………..

My total income is £ ……………………..

My total outgoings are £ ……………………..

This leaves me an available income of £ ……………………..

 

We can help

We can help get your finances on track whatever your circumstances. To book a telephone financial review with one of our professional financial advisers call 08000 85 85 90 or email appointments@lighthousefa.co.uk or contact your usual Lighthouse Financial Adviser.

 

The initial consultation is designed to discover whether or not you would benefit from financial advice and there is no obligation on either side to proceed further. Any advice related fees will be clarified with you before any commitment to proceed.

The value of your investments, and the income you receive from them, can go down as well as up, so you could get back less than you put in. A pension is a long-term investment and inflation will reduce how much your income is worth over the years. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.