Budgeting Tips to Save You Money

Why budget?


When it comes to saving money, budgeting really can be your best friend and is great way to analyse your finances and get on top of your spending. Sometimes you may not even realise you’re overspending, which is likely to be eating into your saving and causing you to build up debt. Here’s our guide to some great budgeting tips that can help you save money!


Analyse your finances


As a general rule there are three main steps involved in generating a budget:

  • Work out how much your spending :

Firstly you’ll need to calculate your income. Make sure you deduct tax and national insurance from this figure, and generate figures for both your monthly and annual income.

  • Calculate your outgoings:

The next step is to work out exactly how much you’re spending. Avoid guessing as this needs to be as accurate as possible to be effective. Remember to factor in occasional expenditures, such as holidays, and not just your regular monthly outgoings, and calculate a figure for both your monthly and overall yearly expenditure. You may also want to refer to documents such as your bank account statements and bills etc. to help make this as accurate as possible.

  • Compare:

Now you have an idea of how much money you have coming in and going out you can move on to the next step, which involves comparing your income with your expenditure. This is as simple as taking your monthly and yearly expenditure figures away from your annual and monthly income figures. This will leave you with a better idea of what the monthly and annual shortfall or savings in your finances are. Make sure you leave yourself adequate time for this process.





Now you have a better idea of your financial situation, you can begin planning your budget so you can ensure you don’t spend more than you earn. Even if you find you don’t have a shortfall in your finances, it’s always a good idea to draw upon a budget anyway to help you save for a rainy day and any unexpected costs. When it comes to making a budget, often the hardest part can be sticking to it, hence it’s important you ensure your budget is realistic. Furthermore, a common reason why budgets don’t work is that it’s often the little things you might overlook, like a cheeky take-away coffee, that can catch you out. Those expenses all add up. Start off by making small changes, such as cutting back on non essential items (like that coffee); these small lifestyle changes can make a huge difference over time. You can also make some fairly pain-free savings by looking into how you could save money on your bills for example


Here at Scottish Debt Help, we have extensive experience of providing expert advice to help become debt-free. We offer a range of services from budget and money management advice to mis sold PPI guidance. So if you’d like further information about managing your finances and becoming or staying debt-free, then please don’t hesitate to contact us and a member of our friendly team will be happy to help you with your enquiries.

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