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Getting started on an annual household budget

Woman with Laptop Looking up Bills

28 Jan 2020

Posted in:  Financial Planning and Savings and Deposits

We all splash out on stuff that we don’t need or spend that little bit extra at times. Take control; start an annual household budget to help you manage your spending throughout the year.

We have created some tips and tricks that’ll make the entire process a lot easier.

1: Figure out your total income

First things first, figure out what type of budget you’re working with. Have a look at all your incomings, from salaries to children’s allowance. Once you know what your total is you can get started on a plan.

2: Plan, plan, plan with a calendar

Budget for the odd unexpected event like a wedding. Plot any big events on a calendar so you know what’s happening throughout the year. That lets you allocate money from your budget towards them.

3: Budget month by month

Once you have big events in a calendar it will be easier for you to create a monthly budget. Some months might be busier than others so be flexible with the amount of money you set aside for each. Don’t feel like you need to set the same budget for each month. September can be an expensive time with back to school costs so allocate a bigger budget for that month and reduce it down for some of the quieter months. Coming up to Christmas, make sure that you’ve got enough set aside.

4: Keep a record of those more expensive things

You’ll probably find that there are regular expenses that you have each month – things like your mortgage, rent, electricity, broadband, gas and mobile bills. A lot of these will be the pricier items on your budget sheet and are important things to include each month. Focus on getting those covered before you consider any of your other expenses.

5: Expect the unexpected

If you can afford to, it’s always good to set aside a rainy day fund for any unexpected costs – things like last minute events, medical or dental emergencies. Having that little nest egg will help with those unexpected events.

6: Know the difference between what you need and what you want

Let’s face it – we’ve all been guilty of strolling to the shops just to buy that one pair of jeans but you end up coming home with a handful of bags. Think about the cash that you might be wasting on all that stuff that you probably don’t need and it’ll make it easier to stick to your annual budget.

Find more tips on managing your money here.

 

Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.

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