Make a Monthly Budget Plan 

If you make a monthly budget plan (and stick to it) you may find that you have a greater control over your finances and that you are able to organise your money much more efficiently.  It will also allow you to regulate your spending so you are able to set more money aside to save for a dream holiday or a new car.

Ideas for your Budget Plan 

1: Work Out Your Income 

The first thing that you need to do for every successful monthly budget plan, is to work out your income. This will basically be your wage and maybe your partners.

Remember to include things such as benefits, investments or reimbursements for company expenses. You may wish to include a column for 'Other' to include gifts, cash-back offers etc.

2: Work Out Your Expenses

The next step is to outline your expenses and the best way to do this is to split your outgoings into sections:

a) Regular Outgoings.
These are expenses which are due on a weekly or monthly basis. It will cover things such as mortgage/rent payments, home insurance, food shopping, childcare, utilities and payments to your unsecured creditors or debt management plan.

If you find that you are struggling with your debts and that already your outgoings are more than your incomings, it would be wise to seek expert advice. Debt Free are on hand to answer any questions that you might have, so don't hesitate to get in touch via our freephone number 0808 131 0039 or take the Debt Free Test.

b) 'One Offs' and Treats.
These may be things that don't happen every month but is worth keeping an eye on and making sure that you budget for these outgoings. Such items include: eating out, birthdays, hair/beauty appointments, cinema trips, dental expenses, subscriptions and gym memberships. 

This list should also include anything like the morning coffee on the way to work and, although it is only a couple of pounds a time, you will be amazed at how quick this can add up.

If you are struggling with your debt then you might find that these are the first to go. But try not to cut them all out, especially if it is something that you really enjoy. You might be better restructuring your current outgoings with the help of Debt Free, via a debt management plan or an IVA.

3: Live Within Your Means - and Stick to the Plan!

Step 3 is very important, you need to make sure that your budget planner is practical.  

If you find that half way through the month you are overspending, the you need to sit down and re-evaluate your finances. You might find that you have had an unexpected expense, such as car repairs. for these type of situations, it may be a good idea to set aside some extra cash. Whatever you don't use could be put towards your savings or pay off more debt.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)