2 in 5 people do not feel in control of their finances (Money Advice Service)
Around half of UK adults struggle with bills and commitments (Money Advice Service)
The average UK adult would be £300 better off a year if they managed their money better (Government Report)
No-one could claim that budgeting is a fun activity, so why bother to do it? Simply, it can make your money go further, so you can meet your bills without worry and have some left over for the nicer things. You’re less likely to end up in debt (which will cost you worry and money), you’ll get a good credit rating which will make borrowing cheaper when you do need to do it, and it helps you to save so that you can spend more on things like holidays and Christmas.
Ask yourself:
Do you know that you have enough to pay bills for next month?
If you faced an unexpected expense of £200, do you know how you would pay it?
Are you sure you are not paying more than you need for essentials like energy, mobile phone, broadband or insurance?
Do you know how much you can afford to spend on birthdays and family events, treats (big or small)?
If the answer to any of these questions is “no”, then you are probably losing money. You may be borrowing money (and paying for the privilege) that you don’t need to, or wasting money on bad deals.
Making a budget would, at least, give you peace of mind and might also free up more money to spend on yourself and your family.
For a more detailed examination of your financial position, go to https://www.moneyadviceservice.org.uk/en/tools/health-check
Just Credit Union provide an interactive budget planner, go to
https://www.justcreditunion.org/useful-documents