Making Sense of Budgeting;

Being financially savvy has more to do with understanding budgeting and smart spending, than how much you earn.



People often get their expenses to catch up with their income because they only focus on earning more money without learning how to plan and budget whatever income they have, to accommodate their expenses such as shown above.

Budgeting effectively involves spending systematically and putting aside part of your income to save or to invest.


Budgeting is adjusting your expenses to match estimated income over a specified period of time or for a specific project – Sticking to a budget by monitoring your income & expenses will give you a measure of financial control because you can keep track of what money is coming in and where it is going. Most importantly, you place yourself on the right path towards building wealth.

Basic budgeting tips;

  • Start by putting together a summary of your monthly income and expenses – You can achieve this by recording your expenses everyday, then add them up at the end of the month to determine approximately how much you spend monthly and what you spend on.
  • Based on your monthly financial summary, Plan for savings (  and/or investment ) – budget to save up to 10% of your income monthly. Put away this amount every month to save or invest.
  •  Break down the rest of your monthly income to accommodate priority expenses i.e rent/mortgage, utility bills etc. Then trim your non-priority expenses where you can to save a bit more money.
  • Budget a certain amount for food every month and split it into 4 weeks. For example; £200 per month – at £50 per week on food. Try to stay within your budget every week.

Keep your eyes on your money, cut down on unnecessary expenses and spend below your means, so you can save more for investment ( There are many ways to spend less on great deals ).  This will give you better control over your money and will put you on the right path to building wealth.  GOOD LUCK x

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