MABS South Munster encourages people to consider 2023 budgeting in February

SOUTH Munster MABS (Money and Budgeting Advice Service) said February is the best time of year to assess personal finances for the year ahead and have encouraged the public to contact them for support and prepare for the year ahead by creating a budget.

South Munster MABS have identified February as the perfect month for people to re-evaluate their outgoing income and expenditure, as most people will have spent January recovering from the financial implications of Christmas.

As the overall cost of living continues to rise, budgeting has never been more important to stay on top of expenses.

A survey by Deloitte at the end of 2022 found that six out of 10 Irish consumers often have no money left at the end of the month, while another recent survey from Aldi Ireland discovered that the cost-of-living crisis is making almost one in every three people (30%) ‘fearful or anxious’ about the future.

While the concept might be new to many and appear daunting, a simple approach to what you expect to come in and what you need to pay out will help families make the necessary adjustments for expenses to come.

MABS suggests taking the following three-step approach to preparing a budget:

Think about your goals - short-term and long-term. Short-term might look like covering your bills, paying off your credit card or reducing your overall spending. Long-term goals might look like taking control of your debts and planning for the future.

Look at where your money is going. Opening your bank account and getting a pen and paper and looking at exactly what you are spending your money on, and what is necessary and what is not.

Think about needs, versus wants. Needs include essential items you need to live, such as rent or mortgage payments, and bills such as electricity, and loan payments. Wants are everything else you might be able to cut down on or live without.

Ursula Collins, Regional Manager, South Munster MABS said: “The idea of starting a budget and looking at your finances might sound complicated, so we want to make it as easy and approachable as possible. Once you have figured out your goals, your expenditure, and your needs versus wants, you can take the next step.

“It is important to look at where your money is going right now, and we can help support you along the way to take better control of your finances.

“A lot of our calls and visits at the moment are from people looking to prepare; they have heard the news and are well aware that times are tough, and want to get in the best place they can now. Our goal at MABS is to offer non-judgmental support for everyone – there is never a better time than now to look after your money.”

MABS have also created easy-to-use money tools and templates on their website to help people take control of understanding their money and tackle debts to allow them to make the positive changes needed to reach their goals.

For more information about money management, mortgage arrears, and tackling debt, contact MABS for free, confidential, and independent advice at any point along the way.