Example B

If your form is better matched to that of example B and you have a disposable income of less than 5% then you need to read from the following advice.

It is very likely that because you are showing some spare cash at the end of the month you feel that you don’t have to worry too much at this stage; and to a point you would be correct not to worry or panic, however you do now need to be aware that your situation needs some attention and more importantly you now need to take some steps to ensure you do not get into a debt trap. At this time a sudden increase in costs could tip your finances over and stretch them to breaking point.  

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But let’s not lose sight of the fact that as of now you are winning even if it’s by a small margin. So what can we do to extend the advantage you have and to bring you into line with example A.

Well the answer is we can do a great many number of things. Your objective is to look at ways of reducing your expenditure with the aim of raising your disposable income to a level equivalent to ten percent or more.      

From the income and expenditure form you should be looking at areas you can save money.

Choose things which will be easier to commit to, for example if you smoke don’t just say ok I will quit and hope that you do, decide how you will quit and when put a plan together, if quitting will be too hard compromise with yourself and look at smoking less, by dropping from 20 to 10 a day you will save over £1000.00 every year which is a great start.

Also make sure that everyone in your family / home is committed to your plan, by getting everyone to work together you will be amazed at what you can achieve.

next page: Example C

Example D

Creating disposable income

Managing your creditors