Finance & Budgeting
Basic budgeting is essential to cover regular household bills as well as day to day expenses. To work out a plan firstly need to add up the following:
- Income from work
- Income from benefits
- Maintenance payments
- Any other money coming in
The total here is your Total Income (make sure you work this out either weekly or monthly - don't mix the two).
Then you need to need to total up your expenses:
- Rent/mortgage
- Gas
- Electricity
- Water
- Council tax
- TV licence
- Insurances
- Other payments (credit cards/hire purchase/catalogues, etc.)
- Food shopping (including baby food)
- Clothes shopping (you and baby)
- Nappies
- Childcare costs
- Bus fares/car costs
- Trips out, birthdays, Christmas, any additional or one off expenses
The total here is your outgoings.
It is really important to keep track of what you are spending and make sure your outgoings aren't more than your total income - it sounds simple but it can be very tricky to manage with a baby on the way. You will need to prioritise exactly what you need and make sure you don't spend more than you can afford on luxuries. If you are late with your rent/ mortgage or miss payments you risk being evicted.
