A Personal Budget Plan is the First Step in Achieving your Financial Goals

A personal budget plan helps to assure your financial success. Here is a free budget planner or you can make your own. Here's how....

Draw a line down the centre of a piece of paper. Write the word income on one side and expenditure on the other.

You can if you like further subdivide expenditure into fixed ie mortgage/rent, direct debits, and variable ie food, clothes and recreation, however it's not necessary.

A personal budget plan is a financial document used to project future income and expenses. Here is a few sample headings to help you along:

Income: salary; benefit payments; student grant/loan; other.

Expenditure: rent/mortgage; credit card; loans; utility bills; tv licence; council tax; building/contents insurance; phone line rental/calls; internet; petrol; servicing etc.

After you have written your personal budget plan I have a top tip for you. I did this for 2 years when I was struggling for money. Find yourself a 5x3 piece of card or paper(index cards are good)

At the beginning of the month or on the date you get paid put the date at the top then your total income underneath. Subtract all fixed expenditure ie mortgage/rent direct debits etc. This will leave you with a subtotal. Subtract from this figure an amount you want to save and make sure you save it....

.....Be realistic!

If you are unable to save anything don't worry, you will be able to soon. Every time you spend money keep deducting it from the subtotal.

Make sure you carry your piece of card with you everywhere!

Because you are doing it in real time you know exactly where you are financially. You will find that you start to be very careful how much you spend and actually enjoy being frugal.

Stick with it, it works!

Ten Ways to Save Money

1. Change mortgage companies. A new interest rate can make a huge difference to your repayments and personal budget plan.

2. Change energy suppliers. You can do the whole process online.

3. There are insurances for everything these days.

Do you really need them?

If you are paying £10 or £20 to the gas board to insure your boiler against breakdown for example, why don't you save this money in your own bank account instead. Get disciplined!

4. Kettles use a huge amount of electricity! Only put enough water in for the required number of cups. Do not fill the kettle right to the top. Actually I still have this habit, much to the annoyance of my girlfriend.

5. Don't use a tumble dryer unless absolutely necessary. Don't use a dishwasher unless it is full or has a special economy setting. Make sure the water is on the lowest temperature setting to wash dishes properly.

6. Most modern hot water tanks have a thermostat on the side. Make sure it is turned down far enough to give you hot water but not high enough to warrant having to cool it down again with cold water. What's the point in that?

7. Only fill your fuel tank up to half full in your car. Over a year this saves fuel because the car is never carrying a heavy full tank of fuel. And make sure those tyre pressures are correct. Check regularly.

8. Pay all bills by direct debit. It's usually cheaper.

9. If you build up a credit with one of your utility suppliers, get it back off them. Its better making interest in your account not theirs.

10. Never pay interest on credit cards. Consolidate debt with one loan, its usually cheaper.

Ten Ways to Increase Income

1. Overtime - be careful you use extra income from overtime payments to pay off debt or for saving. If you start using it for extras you quickly become used to the extras and continue to do overtime. This is not a good idea. Remember about quality of your relationships and life in general. This is why goals are so important - see below

2. Part time job - there are many part time jobs which will give you an increased income in the short term, however the same rules apply as above.

3. Work from Home - this is by far the most popular because you save on fuel and can stop and start it when you want, fitting it around your personal life. You can even do it part time while still receiving a salary from your regular job.

4. Promotion in your present job. Promotion means more money and more responsibility.

5. Increase your skills by taking courses either with your present job to increase chances of promotion or in your own time with a view to changing jobs.

6. Change your job completely for an increased salary.

7. Check your tax code and make sure you are not paying too much tax.

8. Make sure you are claiming everything you are entitled to with regards to your job eg. allowances for cleaning of uniform or using your own vehicle.

9. Child benefits/disability allowances - are you claiming everything you are entitled to?

10. Work for yourself on a full or part time basis. Many businesses have the potential to make you lots of money. Online businesses have made more millionaires in the last few years than any other opportunity. However be aware that any opportunity requires dedication and a desire to succeed.

Goals

With reference to your personal budget plan and future financial success it is very important you have financial goals.

It is even more important you write them down and read them periodically!

Here are some further ideas to help you with this process:

1. You need short and long term goals with completion dates!

Remember your short term goals might be as simple as 'pay off credit card bill'

Your long term goals can be much more interesting eg. I want to be a millionaire by my 45th birthday. This is how I started.

If you think about your goals and do something towards them, daily, no matter how small, you will achieve them.

Here's a hint given to us by Abraham Lincoln....

2. Track your spending in the way I have outlined above for the next few months and beyond.

3. Create a personal budget plan based on your goals and income.

4. Review on a monthly basis. Does anything need to be added or changed?

5. Was there major discrepancies between planned and actual expenditure? Constantly make adjustments.

6. The very fact that you are doing something about your personal budget plan and making goals for the future will make you feel more positive.

7. Continue to evaluate and adjust even when you become more wealthy. It is very important that you keep the habit of updating your personal budget plan for life.

I wish you every success!