In this lesson you will learn đ¸
- What a budget is
 - What tools you can use to set up your budget
What is budgeting?
Budgeting is the process of creating a plan to spend your money. Your budget usually operates on a monthly basis and details all the income and expenses in your current financial situation.
What should I include in my budget?
Remember the 50-30-20 rule? Here are some examples of what should go into your budget:
How often should I review my budget?
- When starting a budget for the first time, you should get into the habit of reviewing it pretty regularly, e.g. monthly.
 - Keep track of your budget with a budgeting app, in your e-banking account or in a spreadsheet.
 - Once you get into the habit of budgeting, it makes sense to do a larger review every three months or at least once a year.
Tip đ
One of the easiest ways to review your budget is when you're checking your bills and direct debits.
Budgeting tools âď¸
Weâve looked at lots of free budgeting apps and online tools, and here are some that we think are worth your time:
- Mint: this app syncs with your accounts, including credit cards, to show how all your money flows in easy-to-read charts
 - Money Dashboard: you can categorise your spending and see goals of your figures for the past six months
 - Bean: this app flags up better deals for the stuff you buy, from pet insurance to interest rates - it can even help you to identify unused subscriptions that could be cancelled
 - Emma: once you sync your accounts and set a savings target, this app will let you know if youâre spending too much or if a purchase is going to push you over your limit
 - Cleo: as an AI chatbot, Cleo can instantly answer natural language questions - simple ask âcan I afford thisâ, and youâll get an answer including easy-to-understand charts
If you prefer a good old excel spreadsheet, find our budgeting calculator next.
SmartPurse Calculator: Budget like a Pro
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Your action đ
- Pick a budgeting tool (app, card, spreadsheet)
 - Set up your budget
 - Decide how frequently you want to re-visit your budget and either create auto-alarms or calendar reminders to make the necessary time