Why is budgeting so challenging?
So if knowledge isn't the barrier, what is?
If you still need convincing...
Elle is a 38-year-old solicitor who travels to work by train. Lets say a latte costs £4.25 and she grabs one at the train station each morning, each workday, five days a week.
Her company offers a generous holiday entitlement of 35 days holiday plus a few sick days here and there, so she buys 220 coffees a year, which is £935 a year.
Some practical budgeting tips. Here's what we know works.
Tip 1 - Tracking is power. Know your disposable income.
Tip 2 - Trick yourself into saving.
Chloe’s favourite feature on Starling was the ’round up’ feature. On one of the spaces (she used it on her Christmas space) you can tell the app to ’round up’ every transaction you make to the next pound and distribute the difference into your chosen space.
If you spend £4.05p it rounds that up to £5 and 95p goes into your designated saving space. You can even tell this to 2, 5 or 10 X the roundup amount to get to your savings goals quicker. You really don’t notice it happening and before you know it you have the money for your next weekend away, or whatever.
How else can we help
- Assess your money type
- Create a budgeting strategy that suits you
- Have quarterly budgeting checks in’s to ensure you stay on track
Where else can you look for help
References
Fogg, B.J. (2009). “Tiny Habits: The Small Changes That Change Everything.”
Baumeister, R.F., Vohs, K.D., & Tice, D.M. (2007). “The Strength Model of Self-Control.” Current Directions in Psychological Science, 16(6), 351-355