How to budget

Budgeting is the key to success. Investing time and commitment into your budget plan will help you exceed and to provide yourself with the best chance at chasing your goals.

A huge amount of women are now taking control of their finances and achieving success through budgeting. To budget successfully, it is important to be realistic. A huge amount of this generation hold a side hustle to their name to feel more confident in budgeting for the present and future.

The 50/30/20 rule is an empowering tool for anyone who wishes to control their finances and build the future of their dreams. However, those who dream even bigger need a more in-depth sub-tool.

Bank accounts for saving:

• Current account -Where all income navigates to, the account where you send funds to a specific account from

• Savings account - This is the account where you transfer left over funds from each month into savings

• Property account - This is to either save up for a mortgage or to cover the cost of rent and/or cost of monthly mortgage cost

• Personal upkeep account - This account is for personal upkeep including nails, hair, facials etc)

• Bills account - This account will cover wifi, electricity, heating, entertainment profiles, car service, road tax national insurance, phone, water, heating service, electricity service, council tax, tv licence, car fuel, all insurance covers etc

• Retirement Fund - This is an additional account for those out with a pension plan. Most individuals have a pension plan with their jobs that is deducted from their salary each month, however those who are self employed it is recommended to create a retirement fund on the side to boost additional cash flow later on in life)

• Holiday account - This account is for weekend trips and abroad holidays. Most people budget holiday spending each year to get the most from their time off

• Business start up account - This account is where you put an amount of money required to start that side hustle, best to save this in your personal savings first before opening up a business account

• Rainy day account - This account is a small placket of money put aside for in case fo emergencies

• Wedding account - For those who are looking to get married

To create an appropriate savings plan its important to note your main areas for saving:

• Spending

• Bills

• Savings

For example,

Monthly Salary (after deductions) = £1000

• Spending allowance - £300 (Whatever is not spent per month should be put into savings)

• Bills allowance - £300 (Account to cover costs of bills and personal upkeep)

• Savings - £400 (Split between accounts savings account, property account, retirement fund, holiday account, business start up, rainy day and wedding account)