money

It’s always a good idea to use a budget to keep track of your personal finances, but it’s vital when you’re up to your neck in debt! The basic idea is simple. A budget just compares the income you have each week or each month with the things that you have to purchase. Right, first you need to work out your total monthly income. Include your income from all sources. This means wages, regular overtime, bonuses, any benefits you claim, etc. The figures you use must be after-tax, so count you are take-home pay instead of your gross pay. If your income varies, it’s advisable to work out how much income you’ll have at the start of each month. Have you done that? Write the figure down. In [month] my income will be.......... Now we’re rolling! This figure is all you’ll have to live on for the next month and take a chunk out of your debts. Vital Expenses Right, vital expenses first. And when I say vital, I mean VITAL. So that includes keeping a roof over your head (rent, m