Previous SnoopSimple guide to registering with a UK doctor Next SnoopGoal Shirley Yanez / 02 June 2014 / Categories: Useful Guides Simple guide to budgeting and managing your money Changing your attitude to think about your money in terms of what you do have as opposed to what you don’t is the key starting point to getting on top of your finances. If you have a job but are living beyond your means i.e. always broke, this is the first thing you must face, you are spending more than you earn, if you want to alleviate all the stress and worry that goes alongside this kind of lifestyle choice. Committing yourself to regular monthly payments for stuff is the first mistake we make, eroding all your personal choices because before you know it all your money is already spent, accounted for before you’ve even been paid. This kind of behaviour and thinking also keeps many of us trapped in jobs we hate just to get by………….not very smart. First Things First Divide your life into these categories Rent/Mortgage: you have to live somewhere and even if this out going can be reduced in the medium to longer term it is something that must be paid right now. Debts/Monthly commitments: this includes everything from credit cards and loans, car payments, utilities, cable TV, phones, monthly subscriptions. Luxuries: everything else including food and petrol. Cash: all the money you have spent but have no idea on what. Now take out your last six months bank statements. If you don’t keep them your bank will happily sent you copies or sign up for free online banking and access your account over the internet. You must go through every transaction month by month allocating each amount to one of the four categories. The truth is getting out of a financial hole cannot be done overnight. The debts and behaviours that have caused the problem have happened over time and will take time to rectify. By gradually taking control of the spending choices still within your control and creating some financial breathing room your patterns/behaviours will change and your stress/worry levels will decrease. Now you have it in black and white your lists will look something like this. Rent £450 Debts/Credit Cards Bank Loan £120 Credit Card 1 £50 (minimum payment) Credit Card 2 £35 (minimum payment) Sofa repayment £10 Car Payment £120 Insurance £40 TV license £12 Cable TV £30 Phone/Broadband £25 Mobile £20 Gas and Electric £75 Luxuries Food £300 Petrol £100 Clothes £50 Other Grooming £20 Pets £30 Entertainment £100 Holidays £60 Unaccounted For Cash Total £220 Balancing your books is brutal but can be done by taking decisive action. Remember why you are doing this; for a better, happier and less stressful life. The truth is, you must not spend money you haven’t got if you really want to enjoy your life. It’s as simple as that so the questions to ask yourself now are what to do next? and how to face and embrace the changes? Rent/Mortgage You have to live somewhere and very few of us are lucky enough to live rent free so this expense must come out first every time and there’s not very much you can do about that. If you own your house i.e. pay a mortgage, you could rent it out and find somewhere cheaper for yourself/your family until you get back on your feet or think about renting out your spare room to increase your monthly income. Debts/Credit Cards and Monthly Outgoings You’ve got to pay your loans, monthly commitments/subscriptions and credit cards and our best advise is to cut this list back totally wherever you can in the short term to free up monthly income in the medium to longer term. Cable TV and your home landline and broadband must go. Get a pay as you go dongle instead if you really need internet access at home. It may be hard at first but is not for ever. Remembering why you are doing this is the key to remaining strong and focused. Print Rate this snoop: No rating yet 4151 Shirley YanezShirley Yanez I am the CEO of Venus Cow A made in England ethical fashion brand based in Leicester. I love good food, films that have a true story, affordable luxury and making brands accountable for their behaviour. I love all kinds of music including Rock, Opera, R&B and classical. When I travel 5 star has Other snoops by Shirley Yanez Contact snooper Full biography Full biography I love good food, books and films that tell a true story behind them. I love affordable luxury and making brands accountable and more transparent. I love all kinds of music, including Rock, Opera, R&B and classical. When I travel 5 star, it has to be 5 star, including good food, comfort, good sheets and no kids in the pool. I love well made clothes and hate fast disposable fashion. 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