KIRSTY APP - Money Planner � Budget

Income Earnings

Income from employment

Income from self-employed earnings (before tax)

Pensions

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

house)

Subtotal

Planned Actual

Total year's income

Expenditure

Essential Non-essential

Housing Rent/mortgage

Rates/community

charge

Ground rent

Water rates

Maintenance/repairs

Home insurance

(building and contents)

Energy Gas/oil/solid fuel

Electricity

Repairs/servicing

GOOD MONEY MANAGEMENT 43

Food Groceries/milk, etc

Lunches/school meals

Clothing Basic clothes/shoes

Basic cleaning/repairs

Basic toiletries

Household Cleaning repairs

Furniture/furnishings

Travel / Travel to work/school

Work costs

Children's Child-minding, nursery costs

Alcohol

Eating out

Clothes/shoes

Cleaning/repairs

Toiletries/cosmetics

Housewares/durables

Telephone

Garden

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,

batteries

Depreciation

Essential Non-essential

Holidays and Holidays

hobbies

TV and video - credit costs/rent, service and

licence

Films and processing

Others

Incidentals Postage Websites/papers

Christmas/birthdays _ Children/babysitting/

outings

Education

Subscriptions

Medical and veterinary

expenses

Costs of keeping pets,

e.g. food

Lump sum gifts

Charities

Others

Tax/financial Tax - on earnings and Professional fees

investments Bank and credit card

Tax - paid through interest

PAYE

National insurance

contributions

Savings Pensions Regular savings

Life insurance

Emergency - Reserve for contingencies

Other

Planned Actual

Subtotal

Planned Actual

Total year's income

Total year's

expenditure

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.


Next:

Involve The Family

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