When the money you have is limited, it is really important to keep track of your finances so that you don’t spend more than you can afford.
Working out a budget is a really good way to keep on top of your finances. It allows you to work out if you have enough money to do the things you need or would like to do.
A budget records the money you have coming in, such as your salary or wages, benefits and pensions, against payments you make, like your rent or mortgage, Council Tax, insurance and other living expenses.
If you don’t have enough money to do everything you want, your budget can help you prioritise and decide what is most important to you.
There are organisations that can help you.
The Citizens Advice Bureau has useful tips to help you manage your money, including a tool to help you set up your budget. They also have advice on saving money on your energy bills to help you reduce your outgoings.
The Money Advice Service gives you advice about running a bank account, planning your finances and cutting costs.
The National Debtline gives free, confidential and independent advice about how to deal with debt, including self-help packs, personal budget sheets and sample letters that you can use to help manage your budget.