Financial Freakout Help! How Do I Make A Budget?

We all know culling your morning latte won't actually result in an overnight house deposit-but how do you get a grip on your finances, especially during these tricky times? We find out...

- Jennifer Savin

MONTHLY

BREAK THINGS DOWN

“This is key to taking control of your money,” says Casey Goodwin, a financial planner and head of paraplanning at the UK-based ethical finance firm Path Financial. “Start with your total income (minus deductions for things like taxes), then list all the essentials you spend money on each month, such as rent, fuel, bills, and food.” Free budget planner apps can help, too—MoneyHelper* has a credit card calculator to sort out your upcoming payments, while Emma combines all your accounts in one place. Heads up: some offer ‘premium’ features at an extra cost.

ALL IN ONE

Whether it is physical paperwork (think: bank statements, receipts and bills) or digital documents, file them all in one easily accessible place, Goodwin advises. Then, get your direct debit ducks in a row; it may take a few calls, but arranging your utilities and rent to be paid on the same day (ideally payday) makes it easier to manage a budget. THE BIG SPLIT Separate your salary into two bank accounts. “One for bills that you can’t touch, and one for general spending,” Goodwin says. This will help you to track ‘fun spends’ vs ‘fundamental spends’. Bonus tip: open your second account with a bank that gives out cash rewards for joining or switching to them—MoneySavingExpert lists some of the best offers available.

SAVE WHAT YOU CAN AFFORD