TIMES have been unusually tough for a lot of us recently…

So many of us have been financially squeezed by inflation in recent years – which has been most obvious during our weekly shopping trip.

For this reason, I believe it’s time we all took a more strategic approach to managing our finances.

But this approach to budgeting extends beyond mere expense tracking.

We should all consider managing our resources as strategically as possible to sustain and grow our individual wealth.

Here are a few simple tips that might help…

Budgeting tools and techniques - Numerous budgeting apps are now available which can automate and simplify this process.

And you might even find one available from your bank.

But it’s important to find the budgeting app that’s right for you – so be sure to carry out your own research.

Others might prefer to use an online spreadsheet which allows you to create a personalised budget template, incorporating formulas to automatically calculate totals and differences.

This method offers flexibility and control over your data.

And others will simply prefer the tactile process of writing their expenses down on paper…

The most important thing is that you have complete oversight of your finances.

Set clear goals - In short, having clear goals with “time horizons” can help guide your budgeting priorities.

So, if you know that you’re going to have to replace your boiler over the next two years then you can plan accordingly.

If possible, it’s equally important to maintain an emergency fund that covers at least six to twelve months of living expenses.

This provides a cushion against any unexpected financial setbacks.

Periodically review your budget to ensure it aligns with your financial goals and adjust as necessary to account for changes in income or expenses.

Prioritise wealth building - If your personal circumstances allow, always consider paying down any expensive debt which drains your finances in the first instance.

It will then hopefully be possible to allocate a portion of your income to savings and investments each month.

It's equally important to regularly review your expenses to identify any unnecessary expenditures… and further opportunities for saving.

Sticking to your budget - Once you’re fully appraised of how you spend your money each month, be sure to set realistic limits.

In my experience, overly restrictive budgets are hard to maintain and can lead to frustration - and even overspending.

Whenever possible, automate both savings and bill payments to help ensure you stick to your financial plan.

Also, ensure that you schedule monthly - or quarterly - reviews of your budget which can be used to track progress, make necessary adjustments… and celebrate achievements.

To conclude

For our clients, budgeting is about more than just managing expenses - it’s about strategically aligning financial resources with long-term goals.

This not only helps to sustain and grow their wealth, but also ensures their preparedness for the future.

By adhering to basic budgeting rules, utilising the right tools and maintaining discipline, it’s possible to master the art of budgeting and forge a successful financial future.

If you have any questions about the best way to get your finances on track, please get in touch with Jillian or another member of the Amber River Leodis Wealth team by going to https://wealthmanagement.uk.com/ .

No individual investment advice is given, nor intended to be given in this article and liability will not be accepted in respect of any action you may take as a result of reading this article. If you are unsure you are urged to take independent investment advice.