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With the current economic climate and with many
people feeling the pinch budgeting is ever more important. It serves as
one of the building blocks of financial awareness.

When working
out our budget we should include all our outgoings to make sure that
our regular fixed bills are covered. Here are a few tips to get you set
up with good budgeting habits.

• Getting bills paid – including annual bills

Include
annual and six monthly bills in your monthly budget so that there are
no nasty surprises when the bill comes in. That means dividing annual
sums into a monthly equivalent. Put this sum in to an interest bearing
account.

• Save for special occasions in your budget

Birthdays and Christmas are not surprises – they happen every year. Include them in your budget. Think of it as a bill.

• Shopping

Always
write a list when grocery shopping. Buy in-house product or non-branded
items. Never shop when you are hungry. More ends up in the trolley that
way.

While shopping at sales is a good idea don’t just buy
because something is on sale. The bargain of the century will just be
clutter if it doesn’t get used.

• Keep a note book of spending

This
is particularly helpful in understanding where your money goes. It’s
very easy to start with $100 but have no idea where it’s gone.

• Pay yourself first

Put
aside something for yourself even if it’s only $10 to start. To start
with this might be an emergency account and later for a saving goal.

• Include entertainment

If
you don’t allow entertainment expenses budgeting becomes a dirty word
and you won’t stick to it. The trick here is to keep within your weekly
allowance. Get the family involved in coming up with ideas to keep the
spending down.

• Regularly revisit your budget

Make any necessary changes. See where you are going wrong, reward what is going well.

Budgeting
will give you power and focus your mind but remember that although I
previously stated that budgets are one of the building blocks of
financial awareness, they are not set in concrete: they are really a
living document. Make changes as needed and make sure that it works for
you. Get into the budgeting habit – it’s well worth the effort.