Beginners Guide to Personal Budgets

Another key life skill to develop is being able to manage your money. One of the simpliest ways to do this is to create a budget (and stick to it). We’ve gathered together some information here to help you start the process of creating your own budget.

Budgeting sounds complicated but its really just the process used to manage the balance between your income (the money that comes to you through earnings, gifts, selling things you own, from your parents, etc.) and your outgoings (your expenditure, savings, etc.).

Having a budget will help you make sure you:

• Have enough money to cover the necessities

• Are spending on what really matters to you

• Are putting money aside for the future

So now that we know why you need a budget check out this video from BBC that talks you through the process of creating your own budget:

Credit: BBC

Now that you know why it’s important and how to do it, it’s up to you to create your own budget. It doesn’t need to be anything fancy or use any fancy apps or software (although these can be helpful) you can just use a pen and some paper and keep the note somewhere handy so you can update it as you think of other things.