Are your outgoings more than your incomings?
How much do you earn each year and how much do you spend each year? Unless you know the answer to both of these questions you won’t be able to balance your books.
The reason many budgets don’t work
Often many budgets don’t work because one months spending is only taken into account. Spending patterns change frequently so remember to look at weekly shops, annual holidays, clothing allowances, car repairs, car tax etc. If you know you spend around £1000 a year on a annual holiday then this needs to be budgeted in as around £84 a month.
Other reasons that budgets don’t work is because many people often miss out the little things. For example a motoring categories should really be broken down to petrol, car insurance, breakdown cover,...