Create a weekly budget
What is a budget?
A budget is a simple way to see how much money you have coming in, how much you’re spending, and whether you have enough money to cover your expenses. If you want to stay in control of your money, start saving, and make sure you don’t fall into debt, then creating a budget is a really helpful and important thing to do.
Get the lingo
When creating a budget, there are a few keywords you need to know:
- Income. This is the amount of money you have coming in.
- Expenditure. This is the amount of money that you spend.
- Surplus. This is when you have more income than expenditure.
- Deficit. This is when you have more expenditure than income (so if you’re in your bank overdraft then you have a deficit).
- Budget. This is a plan you make for managing your income and expenditure.
Creating your budget
Everyone’s financial situation is going to be different. Some people will get weekly pocket money and have a regular part-time job. Other people might get money on their birthday or Christmas. So, depending on your income and expenditure, certain budgeting tools might be more useful than others. To find out what’ll work best for you, check out this ‘Financial Health Check’ chatbot from The Mix where, by answering a few quick questions, you’ll get information and advice based on your financial situation.
Top tips
- Do it weekly
If you don’t have a regular monthly income, then make yourself a weekly budget. List the amount of money you have coming in (from pocket money, money from chores, or a wage from a part-time job), and then write down how much you’re going to spend (going out with friends, corner shop snacks, or gaming credit). The goal of a healthy budget is that your expenditure doesn’t exceed your income. Make sure you include a ‘savings’ category in your budget so you can see yourself working towards your goal. - Keep an eye on your budget
Keep an eye on your budget, whichever way works for you. Write it down on a piece of paper, create a spreadsheet, or download a handy budgeting app — like Daily Budget, Yolt, or Snoop. Many high street banks also have tools on their website or app to help you budget your money. - Set yourself a goal
Whether you’re saving up for a festival ticket or your first car, or you just want to stay out of debt, keep that goal in mind. It can be really helpful to write it down. Maybe scribble the goal on a Post-it and pop it on your bedside table, or keep it as the screensaver on your phone. - Practice patience
Whenever you’re tempted to spend a chunk of money on something — be it new sneakers or signing up to premium on Spotify — wait for a day or so. Then, check in with yourself about whether you really need that thing. Ask yourself, if I didn’t have that thing tomorrow, would it faze me? Chances are you’ll live! - Keep it real
If you’re lying in your budget, you’re lying to yourself. So make sure that the income and expenditure in your budget are realistic. Include everything, from the slushy after school once a week or the cinema trip with friends — including everything that you spend your money on will make sure your budget is accurate. - Don't give up
Didn’t stick to your budget one week? That’s okay! We all overspend sometimes so don’t be too hard on yourself. Just start again the following week!
Never stop learning
Want more ideas and inspiration about making a budget and managing your money? Then take a look at these posts on the blog.
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