|
You and your money
New Year is a great time to start saving. Like most things worth doing, you have to begin with a plan.
To find out how much you can really afford to save, draw up a personal budget. Start by writing down all your monthly expenditure. Be honest with yourself and don't forget:
- Housing costs, insurance, council tax, gas, electricity, water, telephone
- Food, toiletries and clothing
- Travel and motoring costs
- Credit card and loan repayments
- Dentist, optician, prescriptions
- Child care
- Leisure spending, such as going out, books, magazines, gifts, keep fit and sport
|
You'll need to convert all daily and yearly spending to monthly amounts. Then total up your monthly income, such as wages, pensions and benefits.
Total income less total spending shows how much you should have available to save.
Finding somewhere safe to save is also important. Don't keep your savings at home, where you can dip into them.
Credit unions, banks and building societies are far safer than unregulated pub or works' savings clubs or hamper schemes. If you run an uninsured savings club, why not talk to your local credit union.
With a little careful planning, you'll have some spare cash put by for next Christmas.
|
