Friday, 10 June 2016

MANAGING YOUR FINANCES

It has always been an issue in many economies and the UK is not exempt from the fact that many individuals struggle with managing their finances and ensuring that their cash flows are managed adequately.

One of the first issues to address will be the simple principle of self discipline. Self-discipline in being able to manage a budget and the second principle will be being able to 
set up a budget.

A budget is a set plan on how much will need to be spent on every form of expense that you may be involved in and checking this against the expected income for the period. A personal budget can be set for each week so that it is easier to monitor and assess how successfully you were able to manage to stick to the set budget.

A simple template for a personal budget can be as follows;


MONTH 1

WEEK 1
WEEK 2
WEEK 3
WEEK 4
TOTALS
INCOME











EXPENSES:





Rent/ Mortgage





Utilities





Travel





Insurance





Meals & lunch

















Total expenses





Surplus
(Income minus expenses)























You will have to set out amounts for weekly income and then itemise and estimate how much will be spent on your known expenses per week and then make some provision for any unknown expenses.

You have to attempt to make sure that the income is more than the expenses and that there is at least 10% - 20% surplus at the end of each week. This will help you leave some room for any unplanned expenses or it will also help you to get into the habit of saving some of your excess income.

If there is no surplus initially, you will need to set up a plan on to start reducing your expenses gradually or increasing your income but keeping the expenses at the same or reduced level, so that over a set period of time, you will realistically be able to set out your expenses to be less than your income and then you need the self discipline to follow the set plan and budget.

Your Sincerely, 
The Friendly Team

The Training Place of Excellence Limited



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