Budgeting and banking

Get an understanding of how much you earn and what exactly you’re spending your money on. Look into your bank account and debit or credit card statements. You can note things down with pen and paper, on a spreadsheet, through an app, or with an online tool. Sites like Sorted can help you with ideas on how to track your money.

Look at the last three months of your spending and figure out:

• What you earn.
• What you spend on your needs, such as bills, rent and food.
• What you spend on what you want — these things are usually occasional, optional or for fun, like clothes or going out.

Work out what you want to achieve with your money. A lot of people need to save for pricier items like cars, electronics or travel, paying for study, or putting money towards a house.

Some these things will take a longer to save up for, so it’s helpful to divide your goals into three categories:

• short-term (3 years or less).
• medium-term (4-9 years).
• long-term (10 or more years).

There are many example goal planners online, including Sorted’s. Remember that your goals should be about what you want to achieve, not anyone else. This will help you be more motivated about saving or investing.

This step involves creating a budget for spending your money. Look at your spending from Step 1 and assess if you’re putting a lot of money into things that don’t actually mean a lot to you. Determine where you want to make changes and create a budget for how you spend your money.

If you are spending more than you earn and still can’t pay for all your needs, you may want to consider getting help that’s tailored to you. For free budgeting advice, you can contact MoneyTalks.

Set up separate bank accounts for some of your different needs (see below for different account types). For example:

• A bills account that your regular expenses come directly out of, for your ‘needs’.
• A savings accounts for your goals. Think about multiple savings accounts for different goals.
• An emergency fund for new and unexpected costs.
• Your day-to-day spending account linked to your bank card, for your ‘wants’.

Make sure your income is deposited into your bills account. Then calculate how much you’ll need for each expense/goal and move your money between accounts using automatic transfers:

• Transfer an amount (aim for at least 10% total if you can) to your savings account(s).
• Keep enough in your bills account to cover the essential needs, e.g. rent, electricity.
• Transfer whatever’s left over in your day-to-day spending account.

Finally, set up your bills and payments as direct debits or automatic payments. This means you can worry less about remembering to sort them out on time on your own.

If you're looking for ultimate success with your budgeting, make time every week or month to check on your spending and make sure you're tracking towards your goals. If you’ve overspent in one area, adjust it by shifting some funds.

If you need further guidance, talk to your bank about your goals, money management, and setting up accounts that work for you.

"I think the big thing is planning . . . I think about what are the big expenses that I'm going to have at some point throughout the year. So, this year I put money aside for student health."

- Ciara