Budgeting and Managing Money

It may sound strange to think about having a relationship with money but it can be a good way of understanding how we feel about money and what we do with it.

On this page:

Watch a short video about budgeting and managing money.
Follow our seven steps to help you take control of your finances.
Download our guide for more tips and ideas to help you keep track of your money.
Find out where to get help with debts.

The download password is: Budget_Money1

Building a Budget

A budget is just a spending plan based on income and expenses. The aim is to make sure that your income covers your expenses.

The motivation behind budgeting is different for everyone. It could be having enough to cover essential costs, saving for the future, avoiding or managing debt, or relieving stress and worry around money.

Follow our seven steps to start building your budget.

Step 1: Work out your income

Including salary, benefits and help from family or friends.

Step 2: Maximise your income

Check you are getting all the benefits you are entitled and consider taking on extra work.

Step 3: Think about weekly spending

Keep a spending diary to help you identify how much you need each week for essentials and any savings you can make.

Step 4: Identify regular spending

Make a list of all your monthly expenses like rent, mortgage payments, bills, insurance, subscriptions etc

Step 5: Plan for yearly spending

Think about essentials you pay annually like TV licence or house insurance and then decide how much you can afford to spend on birthdays and holidays etc.

Step 6: Prioritise

Some bills are classed as priorities. The effects of not paying these are more serious. Make sure these are paid first. They will include your rent or mortgage payments, any secured loans, council tax, child maintenance, utilities, tax and national insurance, court fines.

Step 7: Find savings

Look at standing orders and subscriptions to see what you can cancel. Review contracts and policies to check you are getting the best deal.

Download our guide for more tips to help you manage day to day worries and connect with others

Download our budgeting guide

IMPORTANT: The information contained in these guides is NOT financial advice. These guides are intended to share information and signpost to further help and support, when necessary. All of the Information is correct as of March 2023.

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Where to get more help with debts

If you are in debt it can be hard to know where to turn, but there are lots of free advice services available. A professional debt adviser won’t judge you, however big or small your problem might be.

Free Debt Advice

Find a free local debt adviser Free debt advice: what to do & where to get help - MSE

National Debtline, 0800 808 4000 Debt advice | Free debt advice | National Debtline | National Debtline

Citizens Advice (use their postcode tool to find your local office) Citizens Advice