Income from employment
Income from self-employed earnings (before tax)
Interest and other income
Income taxed at source (from building society and bank)
Interest on deposit or high interest cheque accounts, government stock interest and company share dividends (after tax) - Income not taxed at source (such as Giro bank interest and
national savings) (before tax)
Child Benefit and other state benefits, alimony or child maintenance payments
Income from property (e.g. letting rooms or part of your
Total year's income
(building and contents)
Energy Gas/oil/solid fuel
GOOD MONEY MANAGEMENT 43
Food Groceries/milk, etc
Clothing Basic clothes/shoes
Household Cleaning repairs
Travel / Travel to work/school
Children's Child-minding, nursery costs
Subscriptions to professional bodies,
Broadband and mobile etc
Car expenses (is the car essential, useful or simply a pleasure?)
Hire purchase or vehicle credit payments
Insurance, road tax, MOT test
Running costs, including servicing and garage, tyres,
Holidays and Holidays
TV and video - credit costs/rent, service and
Films and processing
Incidentals Postage Websites/papers
Christmas/birthdays _ Children/babysitting/
Medical and veterinary
Costs of keeping pets,
Lump sum gifts
Tax/financial Tax - on earnings and Professional fees
investments Bank and credit card
Tax - paid through interest
Savings Pensions Regular savings
Emergency - Reserve for contingencies
Total year's income
Now go back to the beginning of the budget Money planner, and use it to draw up a list of your own. Use the same time scale as that in which your money comes in: monthly, if you have a monthly salary cheque or housekeeping allowance; weekly, if your income comes each week.
First, note all the money coming into the home (under Income), and then make a note of the expenses (under Expenditure). You will note that for most categories of expenditure the Money planner is divided into essential sand non-essential groupings. This should make you stop and think - then you can decide whether or not a particular item is essential to you!
While you are doing this, remember that this is going to be your own budget. There won't be room in it to list every item of expenditure, but the broad headings should cover all the ways in which you spend your money and you can move them around to suit you. Consider how much of the non-essential spending is really worthwhile for you, and whether it is giving you what you really want. Adjust the items to suit you, and you will have your own budget. Then it will be up to you to keep to it.
Remember to consider the implications of inflation. We are now in a period of low inflation, but you should, when you plan ahead, make an allowance for inflation so that you are not caught out. When doing this be overgenerous. If inflation is running at, say, 4 per cent, allow 5 or 6 per cent. Then you should have a nice surprise at the end of the year. If inflation has started roaring ahead again, then at least you will have made some realistic provision for it, and you will be able to adjust your figures from then on.
It is as well, also, to remember that some costs rise faster than others, and some rise faster than the rate of inflation. Allow for this.
Ensure you check up on your position at least quarterly, if not monthly.