Cans If your finances are not in the greatest shape, read this second of our two articles in which Logic director Harj Heer gives his Top Tips on how to go about creating a budget.




1. Track your monthly spending
Many people don’t know how much they spend each month on food, clothing, housing, or entertainment. Whether you’re paying with cash, a debit or credit card, add up your expenditure at the end the month to gain a better picture of how you’re spending your income.

 2Set a budget – but be realistic
The first thing to do is actually work through all your expenditure and make a budget. It is very important at this point to be realistic, if you are used to spending £300 per month going out don’t assume you’ll stick to a budget of £50 per month going forward. Try and set realistic goals.

 3Know the difference between luxuries and needs
If you are trying to trim your spending then knowing the difference between a want and need is essential. Do you really need the £150 per month Sky package?

4. Know your weaknesses
If you know there are certain areas where you spend more money then actively try to reduce or avoid them.

5. Don’t shun insurances
Insurance is a great thing, when you need it. There are a number of different kinds including building & contents, car, and life assurance, plus many others. It’s used to help protect you when certain things happen, but you never appreciate the true value of insurance until you need actually need it.  If you’re not sure which you should have, get advice.

6Make use of free money
The saying ‘there’s no such thing as a free lunch’ can often be true. But sometimes it can be false. For example: some employers offer pension schemes where they’ll match your contributions,  so you put in £100 and they put in £100 (or to put it another way…you put in £0 then they put in £0). Likewise, there are also a number of cashback sites that will give you money for buying things you already do, checking these out can make you better off. At the time of writing the author has made around £400 by using one of these sites.