Do your monthly finances leave you in a spin? No matter what level of income you have, it’s essential that everybody stays in control of their finances – which means budgeting. But a new study shows just how worried people are about their day-to-day finances, with many concerned that they won't have enough cash to get them to their next pay day.
In fact one in 10 admitted that things get difficult for them within just a week of receiving their monthly salary.
By week two, one in five people are concerned that they won't have enough to get them through the rest of the month. This increases to a third of people by the third week.
In the last week before pay day, half of the population is concerned that they won't have enough money until they next get paid.
On average, this means that people are concerned that money is tight 17 days after they've been paid.
With careful budgeting, people don’t need to worry about running out of cash before the end of the month.
Budget planning is an excellent discipline. You'll be able to work out exactly where your money is going, and it will also help identify where any cuts or savings can be made.
Have a look at the planner on the Money Advice Service (http://www.moneyadviceservice.org.uk/yourmoney/). You will need payslips, bank statements and household bills to start with and it will help you see where your money goes.
Looking at your bank statement will help to see where your money has gone. Cutting out luxuries and highlighting ways to comfortably cut costs can help you budget more efficiently.
It’s encouraging to see that the study, by Halifax, revealed more than one in five people check their bank balance at least once a day, and a further 22% check it more than three times a week. A quarter of people check their balance weekly, with just 13% checking their account no more than once a month.
Even better, 38% claim to know how much is in their bank account to the nearest £5. A further 23% say that they know how much money they have to the nearest £20. Just one in 20 say they only know their current balance to the nearest £500.
Anthony Warrington, director of current accounts at Halifax said: “With mobile banking apps and internet banking, it's much easier to stay on top of spending and account activity while on the move. It's encouraging to see people take control of their bank balance, as it means that they will have a better awareness of their own financial needs.”
According to Bacs, the people behind Direct Debit, frugal Brits could cut the cost of household bills by £256 just by switching the way they pay - companies behind regular bills, such as dual fuel energy, broadband and paid for TV services, magazine subscriptions and landline telephone, offer discounts for customers who pay by Direct Debit. On top of that, automating bill payments ensures hefty late payment fees are avoided on things like credit cards and mobile phones.
Remember to check your entitlements - are you getting all the benefits due to you or are you missing out on extra cash?
Even a small addition each month can make all the difference to your monthly budget so do double check your entitlements at Turn2Us (http://www.turn2us.org.uk/benefits_search.aspx).
Make your budget and stick to it. If money is tight, keep a careful record of what you have and are likely to spend so you can set clear cut ways to save money and afford all of those monthly expenses.
Do you fork out more than you can afford? Well, there's a fun spending calculator at www.thedemotivator.co.uk which could help you tot up your outgoings and plug those budget leaks.