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Creating a budget for the year may seem like a huge task but you will be surprised just how beneficial having a budget for the year is. This guide to creating a 2019 budget will talk you through the process so you can plan for a financially stable and profitable year. From earning extra income, to saving money to considering investment, your budget will be a useful tool throughout the coming year. There are some great websites that offer a whole range of vouchers & discount codes.

The first thing you need to do is have an accurate picture of what your current financial situation is like and what your spending habits are. This may seem like a big job, but it is definitely worth it. You need to get all of your financial information together – receipts, bills, bank statements, insurance policies, credit card balances. Include any debts you have; any payment plans you are on and any direct debits too. Find out how much money you spend on household bills and essentials such as your mortgage payments and electricity and gas and then look at where your extra income goes every month.

Next it is important to think about what goals you want to achieve by the end of 2019. Some goals you could consider are –

  • Cut down monthly utility bills by £50 a month
  • Save 15% of your monthly income in an ISA
  • Buy an investment property in 2019
  • Pay off 5% of your mortgage
  • Put £2000 in an ‘in case of emergency’ fund
  • Pay off a credit card

Make sure your goals are realistic, achievable and it will make you feel like you are making positive steps towards your financial future.

Another important part of making a budget is knowing what money is coming into your account. It is important to know what your net household income is and how much after tax too. As well as this, any extra income should be budgeted. You could aim to start earning more income in 2019, with a side business, freelance or investing in property. Investing in buy to let property with respected property investment firms like RW Invest allows you to both invest your money and start earning rental income which can substantially boost your yearly income. Thinking about ways you can improve your finances in the long term is a wise step and having extra income sources can make things easier in case of future financial difficulties.

Once you know how much income you are receiving and how much you are spending, you can start to look at what you can save and what you can invest. Setting up a regular standing order into your savings account can be a great way to save without even thinking about it. Make a clear list of what you want to spend and what you want to save, and try and split up your spending into different categories so you know where you can save money. Simple things like changing energy supplier or getting a better deal on your mortgage can make a huge difference over time. Finally, it’s important that you use your budget throughout the year to check in and make sure your finances are on track. There are a number of useful budgeting apps available which can help you keep on top of your spending. A spreadsheet or paper list will work too, and if you need to make adjustments to your budget that’s fine.

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