How to revise your budget
Go through your check list and work out which payments you can reduce per month.
But also look at the question of boosting your income. If you are self-employed, make sure you are being tax efficient by talking to an accountant. If you are employed, there probably won't be much leeway but is there anyone else in the household who can increase income to the house.
- Ask yourself is there any way of increasing your income? Even the smallest extra income can help – it will boost your confidence.
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Is there someone else in your household who could get a part-time job or full-time job – for example adult children?
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Does anyone owe your money?
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Check you are claiming the right tax benefits – are you getting all of these?
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you can claim eligible medical and dental expenses used the MED1 and MED form.
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Children’s allowance
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Social welfare payments
- Insurance policies - if you have been made redundant, check if you have income protection or mortgage protection
Low income households could be eligible for other benefits. Check with your citizens information centre
Cutting back on your expenditure.
- Now go through your expenditure with a fine tooth comb. Work out what you can cut back on easily.
- First mark the payments that you think you cannot reduce every month, for example rent or life or car insurance.
- Then review these payments. You may, for example, be able to negotiate a reduced mortgage if you are in financial difficulty. And you should also shop around for cheaper insurance. Most companies will do deals.
LINK TO MORTGAGE ARREARS AND REPOSSESSION
LINK TO GEORGE VIDEO ON CHEAPER INSURANCE
LINK TO YOUR TIPS
LINK TO NEGOTIATING TIPS
- However be very wary about dropping insurance completely. Many people do this like cut health or contents insurance before picking up the phone and seeing if there is a cheaper alternative.
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Can you get rid of unnecessary outgoings and save costs on essentials?
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Cut the luxuries - eating out, takeaways, alcohol, golf, gym subscriptions.
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Look at the basics such as your supermarket bill - is there anything you can cut from there?
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Little luxuries like TV subscriptions are fine, but if you are going to create a financial plan that a creditor will take seriously you may have to cut out things like subscriptions to sports and movies.
- Read some of these case studies and get an idea of what creditors will accept your new financial plan.
LINK TO CASE STUDIES
LINK TO CREATING A FINANCIAL PLAN
