1 - Getting Started
Do you know how much money comes in each month and where it all goes? Many people find surprises when they add it up. You'll learn the basic budget formula and build your own monthly budget using your real income and expenses. This helps you see if you have surplus or need to adjust.
2 - Key Terms
| Term | What it means for you | Example |
|---|---|---|
| **Budget** A simple plan for your money: total income minus total expenses. | You'll enter your income and expenses to see if they balance. | €2,000 income minus €1,800 expenses leaves €200 surplus. |
| **Fixed expenses** Costs that stay the same each month, like rent or loan payments. | List these first as they are harder to change. | Rent of €900 paid every month. |
| **Variable expenses** Costs that change each month, like food or transport. | These are easier to adjust if you need surplus. | Groceries that might be €300 one month and €350 the next. |
| **Surplus** Extra money left when income is more than expenses. | Aim for surplus to save or pay extra on debts. | — |
3 - Explore & Apply
You'll use the budget builder tool. First, see a worked example with sample numbers. Then enter your own income and expenses. Categorise each as fixed or variable. The tool shows if you balance or have a deficit. If it does not balance, note one change you could make, like cutting variable spending.
Build Your Monthly Budget
- Enter your total monthly income (pension, Jobseeker's Benefit, part-time work).
- List your fixed expenses (rent, mortgage, loans, subscriptions).
- List your variable expenses (food, transport, clothes).
- Categorise each expense. See your surplus or deficit.
- If deficit, what is one variable expense you could reduce?
4 - Think About It
Consider these questions on your own or discuss with your facilitator:
- Did any expense surprise you when you added it up?
- What was your surplus or deficit? What is one step you could take?
5 - Go Further
If you want to explore more, add irregular costs like car insurance or a medical bill to your budget. See how they affect your surplus. Or plan for a goal like building an emergency fund.
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