“Budgeting Advice with Lucy Wallington”

Lucy Wallington, the founder of Budgeting & Planning, joins me today to discuss some top tips to help you budget and focus towards achieving your money goals, whether that’s saving for your first home, next home or even that wedding you’ve always dreamed off!!

Lucy has over 30 years of experience in management roles in the retail industry and draws parallels between running the finances in her retail stores to running the finances in her household.

Budgeting plays a huge part in both, which led Lucy to start her business - Budgeting & Planning, providing budget planners for those in “every season of life”.

03:52-06:27 - It’s common for people not to be confident with their finances. Often this stems from “not being good at maths at school” and remains with people throughout life as an excuse not to take control of your money.

Important to get a grip on your finances. Know what money’s coming in and what’s going out

06:28-09:19 - Start with the End Goal in Mind – It’s important to understand what you’re trying to get from life and even harder to achieve it if you don’t know what it is!

We’re all different, our goals might be – dream 5 bed forever family home it may be 2 holidays a year, it may be linked to hobbies

Be intentional and don’t sleepwalk and amble along.

09:20-14:40 Tips for First Time Buyers Living at home, saving for a deposit:

• Tip 1 – Have a 12-month plan – On a blank sheet of paper, in a pad or spreadsheet:

o  Put income and outgoings for each of the next 12 months

o Include before and after e.g. expected move date

o  This at-a-glance view of your finances will give you clarity

o  Have separate Bank Accounts:

1.     Salary goes into bill account for all direct debits etc, then transfer:

2.    Spending money into a 2nd current account – everyday spending

3.    Surplus into savings account – do not touch unless it’s an emergency!

• 14:41- Tip 2 – Be ruthless with what’s essential – can you make sacrifices to help save more?
• Tip 3 – Have some fun money, give yourself something to look forward to or the occasional treat – spend it with purpose.

22:30-25:15 “DEFINITELY NOT A SILLY QUESTION” Feature

Q  - What Bank Statements will I need to provide when I organise my mortgage application and in what format?

A – Banks tend to want to see your latest 3 months statements from each of your current accounts even if you have several. They want to see your income (salary etc) and expenditure (direct debits, credit commitments etc). They require this in a PDF file format, which you can obtain from your online banking. If you’re unsure how, a quick google search will help explain how to obtain your statements from your bank.

REMEMBER:

1) Always SEEK ADVICE for your own circumstances, and;

2) A mortgage is a loan secured on your home and may be REPOSSESSED if you don’t keep up mortgage payments

25:15-34:56 Budgeting Tips for First or Next Time Buyers, already paying a mortgage or rent

• Spending Exercise

Print your last 3 bank statements and get 3 highlighter pens (or download into a spreadsheet)

• Highlight all regular essential spending in one colour – Petrol, Rent, Bills, Food etc.