@sawbridgefp: STEP TWO 👇🏻 So, you’ve completed step one, right? If not, go back and do that. Done? Cool. Now it’s time to get to grips with your budget. Learn your budget. Plan your budget. Stick to your plan. There are various tools to do this. Use excel, use a budget planning app (there are lots of free ones) or just grab a good old fashioned pen and paper. List all of your essential outgoings (mortgage/rent, utility bills, credit repayments, food, childcare etc.) List all of your regular outgoings that are there by choice (gym memberships, tv bills, cost of hobbies etc.) What you have left each month is the amount that is truly “disposable”. It’s what you do with this disposable that will make or break your long term wealth. There are lots of theories as to what percentage each part of your budget should be, but I have a very simple view. 10% of what you earn should be invested in your future wealth. You should also regularly save for whatever you plan to spend big on, so that it’s then a planned expense rather than a spontaneous spend that harms your wealth. Christmas, service & mot, birthdays, holidays. Work out what you plan to spend and save specifically for it. So, the maths is as follows: (Income x 90%) - (planned saving) - (essentials) - (regular outgoings) = what you can spend on whatever you like. Use that theory, and you can enjoy spending what’s left knowing that your wealth is taken care of. Clothes, eating out, takeaways, days out, nights out, whatever the luxuries in life are that you enjoy, if you’ve only used the truly disposable money, that’s fine. Knowing your budget and sticking to it is a key part of making yourself better off in future. 👉🏻 make sure you’re following @sawbridgefinancialplanning to see all 10 steps (and regular daily money content) 👉🏻 see link in bio for more on what I do #financialplanning #money #financialeducation #moneytips #financialliteracy #financialgoals #ukfinance #financialfreedom

Tom | Financial Adviser

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Tuesday 14 January 2025 07:55:10 GMT