We know the word “budget” can make people switch off.
For some it feels boring, for others it feels scary, a reminder of money worries.
But here’s what we think: budgeting isn’t about cutting out every little joy. It’s about knowing where your money goes, so you can take back control.
In fact, research from the Money and Pensions Service shows only 44% of UK adults feel confident about managing their money. And nearly half of households don’t have £100 saved for emergencies. So if you’ve never been shown how to budget, you’re not alone.
Why Budgeting Matters
Without a plan, it’s easy to:
- Run out of money before payday
- Lean on credit cards, overdrafts, or Buy Now Pay Later
- Feel anxious every time a bill comes through
With even a simple budget, you can:
- Cover essentials like housing, energy, food and travel
- See what’s left for debt repayments
- Spot waste or hidden costs
- Save for the things you actually want
The 50/30/20 Rule (Made Simple)
A popular method is splitting your take-home pay into:
- 50% Needs → rent/mortgage, bills, food, travel, school related spend for kids
- 30% Wants → streaming, eating out, hobbies
- 20% Debts & Savings → repayments, emergency fund
It won’t work for everyone, but it’s a good starting point. If your essentials are taking up far more than 50%, that’s a sign you may need debt help or to rethink priorities.
How to Build Your First Budget in 3 Steps
1 – Write Down Your Income
- Wages, benefits, pensions, side jobs – include everything.
List Your Outgoings
- Start with essentials (housing, bills, food).
- Then add debts (credit cards, loans).
- Finally, add non-essentials (subscriptions, takeaways).Compare and Adjust
- If you’re spending more than you earn, something has to give.
- Cut wants first, then see if debts can be reduced with help.
2 – Quick Wins We’ve Seen Work
From years of talking to clients, here are tips that add up fast:
- Check subscriptions: many people pay for 3–4 streaming services and only use one.
- Review mobile/broadband: switching can save £20–£30 a month.
- Cook more at home: even cutting one takeaway a week can free up £40+ a month.
- Track spending: free apps like Money Dashboard or even a notebook can show where the “invisible” money goes.
3 – When Budgeting Isn’t Enough
Sometimes, even with the tightest budget, the numbers don’t add up. That’s not a failure on your part. It’s often because debts or living costs are just too high.
That’s where speaking to a regulated debt advisor comes in. We’ll help you:
- Prioritise essentials over unsecured debt
- Negotiate with creditors to lower payments
- Explore options like a Debt Management Plan (DMP) or other solutions
Key takeaway: Budgeting is about giving you choice. Even small changes can free up cash, reduce stress, and stop debt from spiralling.
