How does your budget look like at the end of every month? Is there any spare income left after paying the bills or do you normally get to the end of the money while there is still month left?
As an employee, you receive a salary every month, sometimes broken down into various allowances. From this income, you have your expenditure – typically rent, utilities, internet, mobile phone, shopping and hopefully enough for going out, holidays and savings.
Whatever is left is your spare income.
However, that is far from being the case for many of us. In today’s economy having any extra money left at the end of the month sometimes feel impossible – not an ideal or pleasant position to be in. Here is where debt happens and can spiral out of control without careful budget management.
On the video below, Andrew Blatherwick take you through a traditional budgeting exercise which will help you in your financial planning. You will need to download the Budget Calculator if you wish to prepare your income and expenditure as a practical exercise.
Andrew also talks about interest rates. He explains how much you really pay back on loans and the effects of missing payments or defaulting. He closes the presentation with his top ten tips for managing debts.