Press Release: Budget Planning
Money: it’s very much a part of our everyday lives, yet a lot of us still don’t feel comfortable talking about it. In fact, a 2022 study found that four out of five people struggle when it comes to opening up about their financial situation. The cost-of-living crisis has put pressure and financial strain on so many of us over the past few years. How to save money is a topic that is very much in the spotlight right now. As a nation, we have had to pull together to share our savvy money saving tips.
We hear the word ‘budgeting’, and we immediately perceive it as a negative. We associate it with brutal cutbacks that will leave us feeling miserable. What we fail to realise is that budgeting can actually enhance our financial position, not hinder it. Simply making a few small changes here and there can make all the difference.
Alex Kosuth-Phillips, a personal finance expert at thimbl.com, shares five money saving tips to take control of your monthly budget.
1. Make a payment plan
“Knowing exactly how much you bring home each month is the first step towards taking control of your money and learning how to budget. If you receive bonuses that are not always guaranteed, don’t include them when calculating your basic income. Make a note of all your essential outgoings (for example, bills, food shopping, childcare costs, transport/ car expenses) and deduct them from your net salary. The figure you have left is your disposable income.
It’s good to know how much disposable income you’re working with every month to help you plan and budget accordingly. MoneyHelper offer a free budget planner where you can record all of your spends and receive a full breakdown of your finances.”
2. Scrutinise your spends
“Have a browse through your recent bank statements. What type of spending do you have trending? Do you visit Costa on your way to work each morning, or order in a pizza every Friday night? These automatic habits can soon add up and rinse our funds without us even really noticing. We’ll talk a bit more about ‘wants’ and ‘needs’ later.
Are there any outgoings that you can cut altogether? For example, are you still paying for a gym membership you no longer use? Do you still use your Spotify account often enough to justify the monthly subscription?”
3. Record every transaction
“With contactless payments, it’s easy to tap, go… and forget.
It might sound tedious, but it’s a good idea to go over your transactions at the end of each day. This will help you keep track of your bank balance and may prevent you from accidentally slipping into that overdraft.”
4. Wants vs needs
“When we tighten our belts, our disposable income tends to be impacted first, which can leave us feeling deflated.
It feels unfair that we should have to go without leisure activities and the things that make us happy just so we can keep up with the rising cost of necessities, such as food and energy bills. Separating our ‘wants’ from our ‘needs’ can help to establish exactly where we can make little savings. It’s not about closing the door on the things that bring us joy; it’s about making subtle adjustments to see us through the tough times.
When money is in short supply, thinking outside the box can ensure that we are still enjoying our lives, while making the pennies stretch that bit further.”
5. Ready, set… SAVE!
“Research has shown that 23% of British people have no savings at all, while a quarter have less than £100 in reserve. 51% of British people would be unable to live off their current savings for more than one month. We understand that putting money away into savings is a lot easier said than done, especially when it feels as though you’re barely making ends meet.
When we think about saving, it’s possible that many of us assume that only large amounts count. This isn’t the case – even putting £10 a month aside is an achievement.
Putting money aside for a rainy day can be useful should the unexpected occur. Having the ability to dip into savings can be a huge relief if you suddenly find yourself in a position where you need to replace your boiler or take the car to the garage.
Additionally, watching your savings build up each month can be hugely gratifying, and can actually become quite addictive! Somehow, saving for something you want can make obtaining it feel all the more fulfilling.”
thimbl. has shared five handy hints on how to manage your monthly budget.
-ENDS-
About thimbl.
The thimbl. credit card and the thimbl. Loan are issued by Vanquis Bank Limited. Digitonomy Limited (trading as thimbl.) is a credit broker not a lender, and provides its services to Vanquis on an exclusive basis in respect of each of these products. Digitonomy is paid commission from Vanquis for these services. If Vanquis are unable to provide you with one of these products, Digitonomy will try to find you an alternative product and will receive commission from the provider of that product if you enter into an agreement for it. Digitonomy's registered office is: Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Registered in England and Wales, under company number 08385135. Digitonomy is authorised and regulated by the Financial Conduct Authority, and is entered on the Financial Services Register under reference number 690249. Licenced by the Information Commissioners Office, (registration number ZA007309).
Website: https://www.thimbl.com/
Alex Kosuth-Phillips - Personal Finance Expert at thimbl.
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