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Often
one of the problems of having a regular income for the first time
is the feeling that from now on you will be well off.
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Unfortunately, it doesn’t often work like that and you may soon
come to realise that your money is much tighter than you thought
it would be. How can you avoid this sort of pitfall?
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It sounds boring, but the best way of starting is to draw up a
budget.
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It is probably best to list your known and expected expenditure
over a period of 12 months – use the months of the year as column
headings. Click here for an expenditure
form you can download. We have provided a number of items of expenditure
for guidance.
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Expenditure is often irregular. If you travel by train to work,
you may have to buy a season ticket for example, which you may buy
quarterly or even annually. Also don’t forget holidays (if you can
afford one) and that unexpected repair bill.
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Allow for heavy expenditure months by trying to save in lighter
months – to try to balance your income and expenditure over a full
year.
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Try to build a cash reserve for those unexpected items
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Don’t forget to allow for haircuts etc and laundry bills – items
which can easily be forgotten.
