Rathkeale & Districk Credit Union
Keeping a Budget
Working out your budget isn’t such a big deal; it's a simple matter of discovering where your money is going each month and how much you should have left over at the end. All you have to do is add up all your income and subtract your bills and other outgoings. It's best to work out your budget monthly, even if you are paid weekly, as that is often how most regular bills need to be paid. Remember to be honest and realistic when compiling your income and expenditure. If you have a problem then facing up to it is probably the most important step you will take. It’s only when you see where your money goes, that you can make changes to curb any unnecessary expenses. That way, you'll not only be saving money but making decisions that could change your finances for the better.
Some Useful Tips on Budgeting
- Set up a basic budget by taking note of your money that is coming in and going out to help you keep track of your finances.
- Remember, be honest with yourself and try to include everything you spend.
- Not sure where your money goes? Check your bank statements to help you identify your income and outgoings.
- Keep a spending diary to identify your expenditure. Remember to include every item of expenditure. The diary will show your patterns of expenditure.
- Be aware of your mortgage repayments or rent every month and note the day of the month that the money is withdrawn from your account.
- Remember to include the things you only pay for once a year, such as management company fees or annual car tax and insurance, by estimating and dividing up the average that you'd spend in a year. Don't forget to insert any current debt repayments you may have into your outgoing commitments too.
- Identify areas where you are overspending, ask yourself if it is absolutely essential? Could you make reductions such as switching utility services to a cheaper provider or change your grocery retailer to a more competitive one?
- Check your bank balance frequently online, on the phone or at an ATM.