Do a financial healthcheck, and improve your wealth in less than 60 minutes.
Here’s how to do a family budget that won’t go wonky within a month. Seven steps recommended by consumer finance expert Ed Bowsher from
www.lovemoney.com…
1. Draw up a list of all incomings and outgoings. Don’t forget yearly expenses, like holidays, birthdays and insurance.
2. To discover hidden spending – an expensive latte habit, for example – commit to keeping a money diary for a month.
3. List essential spends first: utility bills, mortgage, council tax, hire purchase payments, water rates and childcare.
4. Then take a close look at six months of bank and credit card statements. These should tell you where you spend the most and where you could cut back.
5. Trim the cost of your monthly spending. Some utility firms, for instance, offer to cut the cost if you pay in advance.
6. Don’t pay for debt while you have savings. Raise your credit card re-payments above the minimum, to pay your debts off faster. Shop around for 0% interest credit cards at
www.lovemoney.com
7. Contact your bank to set up direct debits for all your bills. And divert savings into separate accounts for family costs, such as holidays, children’s activities and Christmas.
SUPER SAVVY ME TIP
Keep your finances in check.
Go to
www.moneymadeclear.fsa.gov.uk for an online budget calculator.