Create your own budget
March 2009
Every year, and between times too, the Chancellor of the Exchequer takes stock of the nation’s finances.
He has to decide how much to save and how much to spend, and levy taxes accordingly.
This wide ranging review takes in the state of the economy; past, present and future. It looks at current expenditure and long term trends. It reports on work in progress, sets targets and defines long term objectives.
The Budget is recorded, usually once a year, in a formal statement to Parliament and, because we tend to only grab the headlines, is received by most of us pretty grumpily, since it often means higher taxes.
But what if taxes were savings? Your own savings? How would you feel about the Budget then?
For every year, in your own small way, that’s what you should be doing too – creating your own budget. You need to know exactly where your money’s coming from and where it’s going, find a way to balance your budget and set aside enough money to do all the things you want to do.
Think of yourself as Chancellor of your own small economy. In essence, your needs are not so different from the country at large - education, transport, housing, employment, looking after the young and the old.
You might, of course, want to throw in a couple of little luxuries that the Chancellor doesn’t usually give away - like holidays or shopping trips.
But, before you increase your debts, it’s important to know where you stand.
