It is that time of the month where you must start to draw together the bills that you know are due next month and the amount of money that you have coming into the home. Only then will you have laid the foundation for next month’s budget.
Things to prepare for next month’s budget
- Knowing how many weeks in the month will allow you to prepare your budget, it allows you to plan for the weekly expenses. If you know whether it is a 4 or 5 week month can free up more income to put towards other expenses.
- Know the amount of your direct debts for the month.
- Know the amount you need to save for annual bills that you put away for each month making them easier to manage.
- If you have gone over budget in any area in the last month, it gives you an opportunity to look at where you went over and if you need to increase the monthly expense or insure that you have some money in reserve in case an over spend happens again.
- Refocus your goals as to what you are looking for from your budget, are you looking to repay debt, not to increase the debt you have. Understanding, why you are working within a budget can help you refocus if you have had a difficult monthly.
Look at the commitments you already have
It is important to look at your commitments each month to ensure you are getting the best deal for your money. Are you paying for a service that is of poor quality?
It is important to make sure that your money is working hardest for you and not for other people. Having direct debts for insurances that you no longer have the product, or car insurance or house insurance that you have let run on each year and you haven’t checked to make sure that you are getting the best deal possible.
Making your money working, the hardest it possible can means that you are getting the best deal too.
It is important that you ensure all the hard work that you put in to earn the money that you make sure that you have it work hardest for you, this means getting the best prices for the goods and services that you buy. You can only do this if you are paying attention to the details of your budget.
Setting out your budget
It doesn’t matter how you tackle your budget, you might like a spread sheet on the computer, or a break down on a piece of paper. Whatever your choice make sure it is working for you. If you are falling behind, or can’t make it balance maybe stepping back and simplifying the process can allow you to see where you are going wrong.
To balance your accounts it is important to balance the incoming with the outgoing, you may have more money coming in than you have going out but the ideal budget should equal zero, matching the incoming with the outgoing. This ensures every penny you earn has a job.
Therefore, creating your budget for next month is important to allow you time to get it right.