Understanding that budgeting can feel restrictive or overwhelming for some people is an important starting point. It's normal to feel hesitant or uncertain about where to begin.
To start, gather your payslip and figure out your monthly income after tax. This is the amount that goes into your bank account. Then, track your spending for a month. Write down everything you spend money on, from fixed expenses like rent and utilities to variable costs like groceries and leisure activities. Identify your fixed outgoings, such as rent and bills, as they are typically easier to recognise since they are consistent each month and often set up as Direct Debits.
Once you have a clear picture of your income and fixed expenses, you can start categorising and prioritising your variable expenses like groceries, dining out, and leisure activities.
By breaking down your expenses into categories and understanding where your money is going, you can gain control over your finances and make informed decisions about where to allocate your resources.
Take it slow, set yourself a timeline for when you want to have gathered all this information by and schedule it in your diary. Remember, budgeting is a gradual process, so be patient with yourself and celebrate your progress along the way.
If you want more detail on how to budget, take a look at our other articles on budgeting here.
If you want some support figuring out a budget that works for you and your family - that's what we do! Book a free 30 minute chat with Ed.