Managing Money

It’s always a good idea to get into the habit of keeping an eye on your money – what’s coming in and what’s going out. This way, you’ll always have an idea of what you can spend and you won’t get into debt.

Budgeting and planning

No matter how much or how little money you think you have, a budget will help you manage your money better.

Try keeping a note of the money you spend over one month. At the end of the month, you’ll probably see that you spend money on all sorts of stuff you don’t even think about. If you need to cut down your spending, have a look at your list.

Think about:

• Bills, e.g. rent, electricity, TV licence
• Transport
• Mobile phone costs
• Presents for birthdays etc
• Car costs, e.g. petrol, repairs, tax
• Clothes
• Nights out/leisure activities

At the start of the month, set aside the amount of money you’ll need for each and stick to your plan.

It might take a few months to work out your best budget, but don’t worry. The main thing is to be sensible about how you spend it. If it helps, keep your receipts to see where your money goes each month.

Statements

Reading and checking your bank statements is a good way to make sure everything is OK in your bank account(s).

• With most banks/building societies, statements are sent out monthly
• With Internet banking, you can view your statements online
• With telephone banking, you can get details of your balance and recent transactions

You might be able to get mini-statements from the cash machine. These would show your most recent transactions. It’s a good idea if you need the information between written statements.

If anything appears on your statements that you don’t understand or that you think is wrong, check with your bank/building society.