Short Cuts to Easy Financial Budgeting with Budget Planner


Check statements

Check your bank or building society statements against your cheque book stubs for any banking mistakes — they sometimes overcharge you. Any credit card bills should also be checked against receipts and filed away if you want to keep them.

Monthly bill payments

See if any of your regular bills can be paid monthly, but make sure you check first that there is no penalty. Insurance companies, for example, charge more for monthly payments as it is a form of borrowing. You’re better off putting the money in a savings account and paying yearly.

Remember that gas, electricity and telephone bills are paid in arrears. If you go over to monthly payments, you effectively lose three months free credit.

Filing systems

Keep a monthly file into which you place all bills, cash machine receipts, shop receipts and credit and debit card counterfoils accumulated during the month. Fill in your cheque stubs, and make a note of anything big you buy with cash. When you finally come to sort them all out at the end of the month, you will find that you have an accurate record of where your money has gone to.

Interest-paying savings accounts

Think about opening a new interest-paying bank or building society account to help save for irregular bills. This may be better than going over to monthly payments or opening a special bank budget account, which can be expensive to run and encourage you to go into debt.

Avoid credit

Use your credit cards wisely. Choose one without an annual fee and don’t use the credit, which is normally expensive. Clear the account at the end of each month. If you clear your account regularly and buy something immediately after your statement is sent to you, you may get up to 56 days in which to pay for it free of interest.

Do not buy small items on credit if you can possibly avoid it. It may be tempting at the time, but you will probably end up paying a third as much again in interest. It’s better to save up first in an interest-paying account.

 

Budget Planner

Income

£

Income from Employment: 

PAYE earnings (enter amount after tax and National Insurance)

Freelance and self-employed earnings (enter amount before tax)

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Income from savings and investments:  

Income taxed at source — such as building society, bank and company dividends (enter amount after tax)

Income not taxed at source — such as National Savings (enter amount before tax)

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Any other income:  

Child benefit and other state benefits, alimony or child maintenance payments

Income from investment property

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Total income: £………………………

Expenditure

£

Essentials: 
Food

Mortgage/Rent

Local taxes

Water rates

Electricity

Gas

Other fuels

Telephone

Tax and National Insurance to pay on earnings and investment income not already taxed

Pension contributions

House maintenance

Buildings and house contents insurance

Travelling to work

Child care

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Total essential expenditure: £………………………
Non-essentials: 
Holidays

Drink and cigarettes

Entertaining and meals out

Presents

Car maintenance

Car insurance and road tax

Petrol

Travel not already allowed for

School fees

Home improvements

Housekeeping

Professional fees

Trade union dues or professional subscriptions

Life insurance

Savings plans

Other investments

Clothes

Newspapers, books and magazines

TV/video rental and licence

Hobbies

Loan repayments

Bank and credit card interest

Children’s pocket money

Your own pocket money

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Total non-essential expenditure: £………………………
Total expenditure: £………………………
Excess (or otherwise) of income over expenditure: £………………………

16. July 2011 by admin
Categories: Finances | Tags: , , , | Comments Off on Short Cuts to Easy Financial Budgeting with Budget Planner

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