Create a budget to understand your finances

If you’re struggling with your finances, getting a real understanding of your situation can help.

This can be done by creating a budget to help you to work out exactly what you have got coming in, the essentials you need to cover each week or month, and where there might be room to cut back.

There are tools, calculators and apps available that can help you prepare a budget, but writing it down on paper is fine too.

Here, our Money Advice Team has put together some hints and tips about things to consider when preparing your budget, as well as some support that’s available to you.

• Prioritise your essential bills
  

  Once you know what you’ve got coming in, you need to ensure you’re prioritising the essential bills. These include rent, council tax, energy, TV licence and any court fines or costs. Make sure these are paid before spending money on other things that aren’t essential.

• Subscriptions
  

  As much as we all enjoy a good TV series, subscriptions have a way of eating up your monthly budget. You may be paying for services you’re no longer using, such as Netflix, Amazon Prime or Spotify. Make sure you check your subscriptions and cancel anything you no longer use or can live without.

• Do a benefits check
  

  If you’ve experienced a change in income or are living on low income, you might be entitled to benefits you didn’t know about. Around £10 million a year is unclaimed by people who are missing out, so check which benefits you can claim by visiting gov.uk/benefits-calculators

• Household support fund
  

  You may be able to get help with essential costs from your local council. This is known as the Household Support Fund and can help you with costs for things such as food and energy. Speak to your local council to find out what support is available.

• Free school meals
  

  Do you know if your children can get free school meals? Visit gov.uk/apply-free-school-meals to check.

• School uniforms
  

  Some areas have school uniform banks, which can help if you’re struggling to afford school uniform. Visit gov.uk/school-uniform to find out more.

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