1. Pull together your paperwork

Rounding up and managing one’s paperwork is the dullest aspect of budgeting.  Without a grip on your paperwork, you have no power over your personal finances. So, get this task out of the way quickly by gathering together all of your statements, payslips and so on.

2. Set up a spreadsheet

Set up a list of all of your earnings and outgoings.

3. Learn to love your bills

Although no-one likes paying bills, they do have one useful function: they provide information about our spending habits. Thus, by keeping tabs on your bills, you can learn exactly where your money goes. However, before you can begin to bash your bills, you need to bring them together in one place.

It’s important not to overlook any of your daily, weekly, monthly and yearly spending. For example, don’t forget to track occasional bills, such as insurance policies which renew each year. Furthermore, don’t omit the little luxuries which get you through the working week. The most effective way to monitor your money is to keep a spending diary for at least a month. By recording all of your spending in a little notebook, you can build up an amazingly accurate picture of your financial habits.

4. Switch to autopilot

Budgeting is boring and it makes sense to automate as much of it as you possibly can. For example, paying bills by standing order or direct debit takes away the hassle of having to pay them as they come in. The same goes for saving.   Instead of saving whatever remains at the end of every month, it’s easier to set aside a fixed monthly amount to put away. By keeping things simple, you can switch to autopilot and thus avoid tiresome tasks.

5. Get help from others

Every one of us knows someone who has struggled financially in recent years. So, don’t be embarrassed to share your financial concerns with your loved ones, because they may be in the same boat!