Creating a realistic budget can feel challenging at first. When we’re struggling financially it can be tempting to try and ignore it. But getting a budget set up is really worth it and helps you feel like you’re on top of your finances.
Here are some simple steps to follow to help set your budget.
Step 1: Know what's coming in
Start by listing all your sources of income, this could be for paid work, from benefits, pensions or other payments. If your income varies from month to month, try tracking it for a few months to spot patterns.
Step 2: Track what's going out
Next, you need to understand where your money goes. Begin with your priority expenses. These are the costs that must be paid first such as utility bills, rent, food and caring costs. These are essential because missing them can lead to serious consequences.
After your priorities, look at your other regular costs like travel, internet and phone bills, insurance, maintenance, pet costs, and subscriptions.
You can view our tips for making your home more energy efficient here.
Step 3: Review and reflect
Look through your bank statements from the past few months. This helps you see patterns in your spending and spot opportunities to save. Many banks have apps that help you to do this.
Budgeting is especially helpful if you're not sure where your money goes. When you track your spending, you'll see exactly what things cost, and that's when you can make choices about what matters most to you.
Step 4: Do the maths
A helpful formula for this: Income minus expenses equals what you’ve left (income – expenses = what you’ve left)
This number shows you what you can save, spend flexibly, or put toward your goals.
Step 5: Build a healthier relationship with money
Some people say they're "bad with money," but it's not as simple as that. Your money habits are shaped by your experiences, beliefs, and emotions. Creating a budget is an important first step toward building confidence and developing healthier financial habits.
Remember: budgeting isn't about restriction. It's about giving yourself clarity and control.
You can read more about our financial support here.
Check out the podcast below to hear how we're supporting residents to be financially stronger.
Quick Reference: What to include in your budget
Priority payments:
• Rent or mortgage ✔️
• Council tax ✔️
• Utilities and water ✔️
• Food ✔️
• Caring costs ✔️
Other regular expenses:
• Travel costs ✔️
• Internet and phone ✔️
• Insurance ✔️
• Maintenance ✔️
• Pet costs ✔️
• Subscriptions ✔️