Many people struggle when it comes to managing their money and often run out of money before payday. This can be due to low wages but it is often down to poor planning.
If you get paid monthly, you need to work out the total amount of money you will receive on payday. Deduct any regular payments such as bills and rent or mortgage payments. Set a realistic budget for things like food and petrol and other essential items and stick to it. Deduct this figure and you will be left with your spending money for the month.
It is a good idea to divide the end figure by the number of days until your next payday. This shows you how much you can spend each day. Keep a record on a simple spreadsheet or notebook of exactly what you spend on each day. For example, if you have £10 to spend a day, and you don’t spend anything on the first week between Monday and Friday, but you want a good night out on Saturday, then realistically you can allow yourself £70 maximum.
If you spend over your allowance on a day or week then you need to make sure that you cut back the following day or week to compensate for this. A simple debt help tactic like this can really improve your self control!
It is also a good idea to try and underspend though. Don’t just spend the money because it is there. Any money that you have left at the end of the money should be put into a savings account, or better still, you can deduct a sum of money straight away before you work out your spending allowance and set up a transfer from your current account to a savings account. You will soon get used to this and will learn not to miss this money. This way, you can save for something special or a maybe go on a nice holiday without worrying about not having enough money to pay for it.