Budgeting 101 - A stress-free plan

Budgeting for beginners

If you regularly find yourself out of money before payday, it's time to take a look at your budgeting, and this is the topic of the 4th video in UCC's guide to financial literacy.  

While the idea of looking at all your expenses can be stressful and cause anxiety, the reality is that the stress caused by running out of money on Wednesday but not being paid until Friday is far worse. 

Anyone who's been there knows that feeling, so if you're dreading the thought of looking at your financing, just keep in mind how much better you'll feel when you know your money is going to see you through to payday and beyond.  

Video #4 Budgeting 101

This is the classic example of 'simple but not easy.' The hard part comes at the very beginning: taking the bull by the horns and sitting down with pen and paper or a computer and listing all of your expenses. 

Next, write down all of your income sources. Subtract the expenses from your income and then take a moment to let the difference sink in.

That's the hard part over with for most of us.

Now analyse what it is that's putting you over the limit and decide what things you can live without, where you can find cheaper options, and what things are absolutely essential. 

The fun part, for some at least, is when you start to take control and decide exactly how much you can spend on each of your essential expenses and make a commitment to stick to those limits. 

What's left over is your 'fun money' or, even better, your savings and investment pot. 

Plan For Today To Eliminate Stress Tomorrow

The bottom line is that if you don't plan now, you're only putting off the inevitable, and the spending hangover will come. 

Take the time today to work through your budgeting plan, and your future self will thank you. 

Pen and paper is good, but if you're more digitally inclined, there are many free budgeting apps you can download to help keep you on track. 

If you really need help getting started, don't hesitate to reach out to MABS.ie, and they'll put you on the right track to getting your financial fundamentals in order. 

Next article in the series - how to start saving