Finances: Calculating Your Individual Living Budget
To calculate your individual living budget you will need to examine all areas of your spending. This is about calculating what you need to live the life YOU WANT TO LEAD, it's not an exercise in how frugal you can be.
Input the details of your MONTHLY spending into the boxes below. It's important that all the figures are monthly or you won't have an accurate picture.
If you have costs that are annual then divide these by 12 to calculate the monthly cost.
If you have figures that are weekly costs then first calculate the annual costs by multiplying by 52 and then divide this number by 12 (as above) to calculate your monthly costs.
The more accurate you can be at this stage, the more accurate your overall calculations will be.
Household Costs
Your household costs will likely be your largest monthly outlay.
They will likely include your rent or mortgage, followed by local taxes such as council tax and TV licence in the UK, utilities such as water, gas and electricity, and insurance for your property and its contents.
Most of us have home broadband, perhaps with an associated TV subscription and landline costs, as well as a mobile phone contract. If you have any additional household outlays specific to your personal circumstances, add those in also.
If what you are paying is likely to increase soon then make allowances for that. For example, if you are living with family currently and paying little or no rent but plan to move to a new location for work, it’s sensible to factor in that new level of expenditure.
Transport Costs
You have to be able to get out and about.
Put in this section all the costs associated with your transportation. Include any finance or leasing costs you pay on your vehicle, road tax, insurance and any parking and servicing costs.
Allow for consumables, such as new tyres. Think about whether your annual mileage will increase or fall are freelancing and adjust accordingly.
If you plan to use your car for work you must make sure that your insurance policy covers 'own-business' use.
If you use public transport regularly, estimate how much this costs you per month.
Financial costs
Calculate these as regular monthly costs - if they aren't regular amounts then estimate a monthly average over a year