Make Budgeting Fun, With Mybnk
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How good are you with money? Do you love to spend or do you prefer splashing your cash? Maybe it’s all a bit overwhelming? We caught up with MyBnk - who empower young people to take charge of their future by bringing money to life - about making budgeting fun. Here’s what they had to say:
It may not sound like the most exciting thing in the world, but getting to grips with the concept of budgeting doesn’t have to be dull or time consuming.
Budgeting is an incredibly useful way to ensure you achieve your financial goals and is the most powerful tool you have in controlling your money! You take all your income (the money you have coming in) and outgoings (all the money you spend) and work out how much you have left afterwards.
Here are our top tips to get into the budgeting mindset and build a habit that will pay you back your whole life:
Why are you budgeting?
Whatever the reason, whether it's saving for a festival or to get into the habit of saving, keep that goal clear in your mind. Write it on a post-it and pop it in your wallet so when you’re tempted to spend you’re reminded of why you are ‘delaying gratification’. Actively working towards something can be motivating - use that rush to keep up your budgeting habit. Ask yourself, if I didn’t have that thing tomorrow, would it phase me? Chances are you’ll live!
A lot of online monthly budget tools are designed around a regular salary. But a month can be hard to plan out properly, and harder to stick to – especially if this is your first time. Make your budget weekly, that way you can really hone in week-by-week on what you actually spend your money on. Start each week with the amount you have coming in, be it pocket money, money from chores or a wage from a part-time job; don’t include any of your savings from the previous week.
Keep it basic
Don’t overcomplicate things with too many different categories in your budget. Include just a couple of your top spends. Maybe that’s going out with friends, the corner shop after school, or gaming credit. Make sure you include a ‘savings’ category each week so you can see yourself working towards your goal.
Be real, be nice
If you’re lying to your budget, you’re lying to yourself. Keep your budget true and if you’re plodding along okay, then factor in a treat. Whether it’s a slushy after school once a week or a cinema trip with friends – putting in those treats for you will make your budget something you can stick with long term and give you a nice dose of good feels.
Don’t give up
Didn’t stick to your budget one week? Maybe after a few weeks of ‘behaving’ you blow your money all at once with a fun weekend or a friend's birthday. That’s okay! We can all give in to temptation from time-to-time. Don’t let that make you think you’ve failed budgeting forever – just start again fresh the following week. Rinse and repeat!
Check in on your budget
Keep an eye on your budget,whatever way works for you. Scribble your budget down on a piece of paper, create a spreadsheet or download a handy budgeting app - like Daily Budget, Yolt, Mint, Acorns, Starling or Monzo - which makes it easy for you to track your cash and see how it’s is doing.
Don’t let the negative get you down
If you do your budget but keep having a negative amount (your outgoings are more than your income) then first, check and see if there’s anywhere you can save money. Next, is there any way you can increase your income? Are you entitled to benefits? Could you find a job? Could you make money as a self-employed person or with a side-hustle? And finally, work out how much you are short by and try to make a plan of how you are going to close the gap.
Get tooled up
We’ve created a ‘Financial Health Check’ tool in collaboration with The Mix - a UK based charity that provides free, confidential support for young people under 25 - to guide you to a specially designed money management course, a text message service or a series of expert authored articles all about being money smart.
Give your ears a money masterclass with our new financial education livestream My Moneycast. Every Thursday at 4pm on our socials you can tune in to a 30 minute show focusing on personal finance news, special guests and Q&As. You’ll also get the inside scoops on how coronavirus is affecting your income, benefits, housing and employment prospects.
And finally, if you’re thinking about, or heading to university, check out our video below on our top five tips for managing money as you study. It covers everything from budgeting, student bank accounts, overdrafts and more!