3 Top Tips to Rebalancing Your Budget

If you’re finding that month-on-month you’re struggling to make ends meet then the chances are your budget isn’t doing its job. The main aim of a budget is to provide a framework for your monthly spend and ensure that your finances are in check.

Ultimately, if you’re finding the week running up to payday a real struggle then your outgoings are probably outweighing your level of income. Throughout this article we are going to discuss ways in which you can rebalance your budget and ensure that you are in full control of your finances.

1.     Reassess your old budget

The first step you need to take when looking to rebalance your budget is to dig out your old budget and carry out a complete reassessment. The first potential reason for financial problems is that your budget simply hasn’t been updated in a while. For example; you may have had your hours cut at work, your rent may have increased, you may have signed up to a gym; all things that could have an effect on your level of disposable income.

By running over all sources of income and outgoings you may now find that you’re left with considerably less surplus income than you initially expected. In this situation you need to look for ways in which you can counteract this.

2.     Look at ways you can reduce your outgoings

The outgoings section should always be your first port of call when looking to turn-around your finances. Specifically, target your non-essential outgoings; things like your subscriptions, memberships, entertainment costs and other luxuries. When looking at your subscriptions you need to ask yourself; can I get by without them? If the answer is yes then cancel them. I know it sounds ruthless, but until your finances are in check you’re going to have to say goodbye to these luxuries.

Another common reason for financial problems is overspending on entertainment based outgoings. By reducing the amount you spend on days out, nights out and takeaways you could find yourself feeling much more financially comfortable.

Having done all you can with your non-essential outgoings, you now need to start looking at your essential outgoings. Firstly, if you haven’t switched energy providers for a number of years, you may find that you are paying well over the odds for your service. Many comparison sites will claim that you could save hundreds by using their service so test this logic and see exactly how much you could be saving. You can also replicate this tip on insurance costs to save yourself even more.

3.     Maximise your income

Having fully reassessed your outgoings you should now find that your budget is looking somewhat less stretched. However, if you’re still looking to increase your level of surplus income then your final efforts should be towards maximising your income.

There are a few ways in which you can do this. Providing your current hours are not too demanding then you could look to take on some additional overtime or even a second role. You could also look at ways in which you can turn your hobbies into a source of income. For example, if you like football you could look at getting a job at your local football club. Equally, if you’re good with art and crafts you could look to set up a weekend car-boot or market stall selling your creations.

 

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