A Personal Budget That Works For Me

Being on top of your finances doesn’t mean ditching your daily can’t-function without-it latte, swapping salon highlights for DIY colour or begrudgingly booking a staycation. You simply need some checks in place. 

So, what are these checks?

It’s as simple as noting down what you spend. There are loads of Apps available that make tracking your purchases, bills and splurges (yep, that’s still ok every now and then) a no brainer. Besides, your phone is always in your pocket so there's no excuse not to use it.

Which App is best?

MOXI recommends an app called Spending Tracker. It’s free and easy to use. You enter your monthly salary and any other income to start then itemise your spending into categories such as ‘Clothes’, ‘Dining Out’, ‘Home Bills’, ‘Holidays’.

How does it work?

The App does all the hard stuff for you, and will show you how much you're saving, or over-spending, each month. Since not every month is the same, you’ll need to use the App for a few months to get a picture of your spending habits. 

What do I do with this information?

So you’ve realised that those daily lattes and trips to the salon really are making a (very large) dent in your finances. It still doesn’t mean you have to go cold turkey. Find a way to reduce your spending (Hint: finding a cheaper colourist or cutting down on visits is a good start). Every little bit saved really does help.

Budgeting is boring

Yeah, we know it’s a snooze-fest so it helps to have some moral support. Get your family, partner or housemates to use the App as well. Go all Type A and create a fun competition around who can save the most in six months. 

Should I have a saving target?

Definitely. But a lump sum figure looks daunting on paper (and in your head too) and we all know how easy it is to miss. It’s more likely you’ll reach your goal if you break your target down day by day. So if you go over budget one day you can make sure you’re better behaved the next. 

How do I work out my daily budget?

First, take your salary after tax minus your rent or mortgage and other re-occurring bills - home, mobile phone, gym, travel -  then minus your savings target. Divide what is left over by 30. Voila! This number is your daily spending fund to do with as you please.

For example: Say, your take home salary is £3000. Your rent is £700, reoccurring bills is £500 and you want to save £500 a month. You will have £1,300 left over. Divide this by 30 days and your 'do-with-as-you-please' budget is £43 a day.

Our final two cents

Tracking your spending can feel like a chore but it means ultimately you can enjoy yourself without the stress and worry of debt. It’s the lesser of two evils in our opinion. Plus, it doesn’t have to be forever. Once you’re on track you can stop using the App (until a moment of madness on Net-A-Porter.com means you need it in your life again!).

Quote to live by: "Financial life is about trade-offs.. Trading what we want today for what we want tomorrow."