Making your money go further

09 August 2026

Making your money go further

Managing household money can sometimes feel difficult, especially when the cost of food, energy, housing and other essential bills is high.

Creating a simple budget can help you understand how much money you have coming into your household, what you need to spend, and whether there are areas where you could save money or get extra help.

You do not need to be good at maths or use complicated spreadsheets. A budget can be written down on paper, kept in a notebook or created using an online budgeting tool.

The important thing is to have a clear picture of your finances.

Why is budgeting important?

A budget can help you:

See exactly how much money you have coming in.
Make sure your essential bills are paid.
Identify where your money is being spent.
Find areas where you could cut back.
Plan for larger or unexpected expenses.
Work out how much you can afford to pay towards debts.
Check whether you may be entitled to additional financial support.

Citizens Advice recommends using a budget to understand what you are earning and spending and where you may be able to reduce costs. You can use the free planner on the money helper website to help you Money helper budget planner.

Step 1: Work out how much money is coming in

Start by listing all the money your household receives each month.

This could include:

Wages or salary.
Universal Credit or other benefits.
Child Benefit.
Pension or Pension Credit.
Child Maintenance.
Pension income.
Self-employed income.
Rental income.
Other regular income.

For example:

Example

Sarah works part-time and receives £1,150 a month from her job. She also receives £400 in Universal Credit and £100 in Child Benefit.

Her total household income is:

£1,150 + £400 + £100 = £1,650 a month

If your income changes from month to month, try to work out an average. If your income varies a lot, it can be safer to base your budget on a lower monthly income so that your essential bills are still covered during a month when you earn less.

MoneyHelper recommends using accurate figures and, where income varies, planning carefully so that a lower-income month does not leave you unable to meet essential costs.

Step 2: Work out what you spend

Next, make a list of everything you spend money on.

Start with your essential household costs, such as:

Rent or mortgage.
Council Tax.
Gas and electricity.
Water.
Food.
Travel to work, school or essential appointments.
Insurance.
Telephone and internet.
Childcare.
Essential clothing.
Healthcare costs.
Minimum debt payments.

Don't forget bills that you do not pay every month.

For example, if your car insurance costs £600 a year, divide this by 12:

£600 ÷ 12 = £50 a month

You can put £50 into your monthly budget for your annual car insurance.

MoneyHelper recommends using bills, bank statements, payslips and your banking app to make sure your figures are accurate.

Step 3: Include your everyday spending

Small purchases can quickly add up.

Try keeping a record of everything you spend for a month. This might include:

Takeaways.
Coffee and snacks.
Clothes.
Entertainment.
Online shopping.
Subscriptions.
Days out.
Gifts.
Hobbies.
Pet costs.

Example

If you buy a £3 coffee and snack on the way to work three times a week, you could be spending around £36 a month.

You might decide to take a drink and snack from home on some days instead.

You do not have to stop spending money on things you enjoy. The purpose of budgeting is to understand your spending and decide what you can realistically afford.

Step 4: Add up your income and spending

Now compare the money coming into your household with the money going out.

For example:

Monthly income	Amount
Wages	£1,500
Universal Credit	£450
Child Benefit	£100
Total income	£2,050

Monthly spending	Amount
Rent	£850
Council Tax	£120
Gas and electricity	£180
Water	£45
Food	£350
Travel	£150
Phone and internet	£60
Insurance	£75
Other essential costs	£120
Total spending	£1,950

This household has:

£2,050 income - £1,950 spending = £100 left

The £100 could potentially be used for savings, unexpected expenses or other spending.

If your budget shows that you are spending more than you receive, don't ignore it. It is a sign that you may need to look at your spending, increase your income or get advice.

What if there is nothing left?

Sometimes your budget may show that almost all your income is being used to pay essential costs.

This does not necessarily mean you are spending too much.

Some households simply do not have enough income to cover their basic living costs.

Citizens Advice has highlighted that people can experience financial difficulties because their income is not enough to meet essential living costs, rather than because of unnecessary spending.

If this is your situation, check whether you are receiving all the benefits and other financial support you may be entitled to.

Check if you can increase your income

Budgeting is not just about cutting back.

You should also check whether there are ways to increase your income.

For example, you could check whether you are entitled to:

Universal Credit.
Pension Credit.
Council Tax support.
Child Benefit.
Help with childcare costs.
Disability-related benefits.
Help with housing costs.
Local welfare assistance.
Charitable grants.

You may be entitled to benefits even if you are working.

Citizens Advice recommends checking your benefit entitlement if you are struggling with essential costs, including if you are working and on a low income.

You can use a benefits calculator to get an idea of what you might be entitled to. You can find links to benefit calculators here What benefits can I get?

Look for ways to reduce your household bills

Once you know where your money is going, look at your regular bills.

You may be able to reduce costs by:

Checking your energy tariff.
Asking your energy supplier about available support.
Checking your Council Tax entitlement.
Looking for cheaper phone and broadband deals.
Checking whether you qualify for a social tariff.
Asking your water company about help with your bill.
Reviewing insurance costs.
Cancelling subscriptions you no longer use.
Comparing prices before making large purchases.

Example: reducing monthly costs

Tom looks at his budget and finds that he is paying:

£45 a month for a phone contract.
£15 a month for several streaming services.
£80 a month for a broadband and TV package.

He checks what he actually uses and changes his phone and broadband arrangements. He also cancels two subscriptions he rarely uses.

If he saves £40 a month, that is:

£40 × 12 = £480 a year

A small monthly saving can make a useful difference over a year.

What about debt?

If you have debts, include your repayments in your budget.

If you are struggling to make payments, do not ignore letters or calls from the organisations you owe money to.

Contact them and explain your situation. They may be able to offer a more affordable payment arrangement.

Some debts are more urgent than others. Citizens Advice describes debts such as rent or mortgage arrears, energy bills and Council Tax as priority debts because failing to pay them can have serious consequences.

If you are struggling with debt, getting advice early can help you understand your options. Call our Warwickshire adviceline on 0808 250 5715 to speak to an adviser or call in to an advice session at your local office.

Try to plan for unexpected costs

If you can afford to, putting aside a small amount each month can help with unexpected expenses.

For example, you might save £10 or £20 a month towards:

Car repairs.
Household repairs.
Replacing an appliance.
School expenses.
Birthdays and Christmas.
Emergency travel.

If you cannot afford to save at the moment, don't worry. Your priority should be making sure you can afford your essential household costs.

Review your budget regularly

Your budget should change when your circumstances change.

Review it if:

Your wages change.
Your benefits change.
Your rent or mortgage changes.
Your energy bills change.
You have a new baby.
Your childcare costs change.
You lose your job.
You start a new job.
You take on or repay a debt.
Someone moves into or out of your household.

Even a quick review every few months can help you stay in control.

Free budgeting tools

You do not have to create a budget from scratch.

Citizens Advice recommends using the free MoneyHelper Budget Planner. It helps you record your income and spending and see what you have left.

MoneyHelper Budget Planner

You can also find budgeting and money advice on the Citizens Advice website.

Citizens Advice – Budgeting advice

If you need help

If you have looked at your budget and are still struggling, you do not have to deal with it alone.

Remember

A budget is simply a way of understanding your money.

You don't need to get everything right straight away. Start by writing down your income and essential spending. Once you can see where your money is going, you can start looking at ways to make it go further.

If your income does not cover your essential costs, get advice. You may be entitled to benefits, grants or other support that you are not currently receiving.

An adviser can help you look at your income and spending, check whether you are receiving the support you are entitled to and identify ways to deal with financial problems.

Brancab gives free, confidential and independent advice. We can help with benefits, debt, budgeting and other money worries.

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0808 250 5715

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