Budgeting Chart & Tips

If you are looking at curtailing your spending, first you need to work out exactly where your money is going. Be warned; this can be a painful experience!

The idea of the chart is to help you set up a realistic budget, then pin point where you need to cut back to stop the debts increasing....

Step 1

Gather together the following items

• Your bank statements and credit card statements for the last 3 months, include your partners as well.
• Your payslips and records of any other regular income such as bonus etc
• All shopping receipts
• A calculator and some ruthless honesty!

Step 2

Fill in the chart, (click here for the chart) by completing all the current amount boxes. For ease of calculation, we suggest making each figure a monthly amount.

When filling in your income...

List all your regular income and don't forget to include your partner's income.

When doing your expenditure...

If you want to be really accurate and ensure that you include everything in the budget chart; carry a notebook with you for a month and note down every euro and cent you spend from your weekly supermarket shop to a newspaper or chocolate bar.

• Don't forget to include special occasions, such as birthdays, Christmas, holidays etc, divide your annual spending on this by 12 to work out your monthly expenditure.
• Allow a realistic amount for irregular or unexpected costs such as repairs etc.
• You may be shocked about how much you are spending on certain items; such as €75 a month on magazines, snacks or lunches.

Step 3

Calculate your montly surplus or deficit

Once you have filled in all your current expenditure figures, take a deep breath and calculate your overall (monthly) surplus or deficit (that is your total monthly income minus your total monthly expenditure). If it's a deficit, you are in debt and need to take action now to reverse this.

Step 4

Take a look at each expenditure entry and decide; "Do I really need this item?"

Ask your yourself two questions...

• Can I reduce any of these costs easily; (e.g. by switching mobile phone contract or changing to a cheaper insurer etc.)
• Or can you do without certain items all together? If so, remove it from the list.
• Can the Credit Union help me manage my debts any better, if you are finding yourself in debt and struggling with repayments, talk to us we may be able to help or advise you on the best course of action.

Now fill in the "revised target" expenditure column in the budget chart for any items that you think you can reduce your spending on. Now calculate the new "revised total expenditure" and see if this brings you closer to breaking even. Good luck!