Let’s face it. Not everyone is good with money. Sometimes it does not matter how much a person earns, it still can be difficult to make ends meet. We often dismiss this as human nature – a person can easily forget about an impending bill or even get caught out by having to pay for an unexpected bill because of an emergency or car breaking down.
That is why making a budget is so important. It is so much easier for a person to manage finances when details are laid out in front of you, helping you to keep track of incomings and outgoings and being prepared for any nasty shocks.
We at Complete Financial Solutions understand not everyone can keep their finances in order so we have experts on hand who can give you the best possible advice to help make your hard earned dollars go the distance. The basics of a sound budget remain the same no matter how you decide to set one up. The obvious first step to creating a budget is to work out what your outgoings are. Utility bills and direct debits to cover rent, car repayments and food are easy enough to remember. But don’t forget other outgoings. It can be easy to forget outgoings like a monthly gym membership, satellite subscriptions or payments for a cell phone tariff. Then work out your incomings. Obviously this will be from your salary or any benefits you may be receiving but do not forget you also may get an income from investments or interest on a financial account.
You should then spread expenses into the fixed and variable areas. This refers to bills that are usually about the same each month, such as mortgage payments, home insurance or loans. Then work out payments that change monthly – like phone bills, petrol or groceries. When you have worked these out, you will then have a good idea where you stand with your budget. If your income is more than your outgoings then you are in a great position and can put money aside for a rainy day or build the surplus into a healthy investment nest egg. If you are spending more than you earn and rely on credit cards or overdrafts to get through the month, then changes will have to be made.
So you really need to talk to one of our advisors at Complete Financial Solutions to come up with a plan. Our experts can usually help you save money by working out a cheaper way of paying loans or finding ways of cutting the credit card bill. Whether it’s to capture a cash flow surplus & turn it into something worthwhile or whether it’s to stop the financial haemorrhaging from a cash flow shortfall, it’s vital that you seek advice to gain control of your budget and cash flow.