Three ways to maximise your budget

Do you manage your money or do you wing it each month? How do you feel about checking your bank balance? How can you make the most of your money without working more hours?

Why you need a plan for your money

Without having a plan for your money, it's very difficult to reach your financial goals. Imagine you’re heading off on a journey to a new, exciting destination. What would you do before you left home if you want to get to your end destination as quickly as possible?

You probably wouldn't set out on the car journey and expect to get there quickly (or at all) without directions. So, try to think of a budget as a sat nav system for your money.

Once you have a spending plan - aka your budget - here are three ways that you can make the most of the plan and get your money to go further.

1. Find a method

Budgeting isn't a one size fits all type of thing, so finding a method of managing your income and expenses that works for you is key to keeping on track financially. Whether you prefer using a notebook or budget journal, you’re a spreadsheet kind of person or you want to manage your money at your fingertips with apps, there’s something to suit every person out there. Personally, I’m a fan of the app-based approach and I use digital banks to manage my income and expenses.

2. Don’t forget to factor in fun

One reason why budgets often fail is that they are too strict, and they don’t account for having any fun and socialising. For your financial and mental health, trying to factor in discretionary spending, however much it is, can help you stick to your plan. Even if it slows down your saving, you'll stay on track longer if you set aside some fun money.

3. Be intentional

When you’re building your budget, set aside some time to reflect and think about what makes you tick. We all have different spending priorities, whether that’s convenience, travel or experiences. Once you figure out your priorities, you can create a budget that allocates more money to these things, with the aim of saving money in areas that matter to you less.

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