Learning how to budget isn’t nearly as tough as it sounds. It all starts with taking a close look at your regular earnings, and what you’re doing with them. There are 2 basic mistakes to avoid right from the start, though. The first is not understanding your costs, meaning you haven’t properly divided your spending up into things you can control and things you can’t. The second is forgetting to factor some regular saving into your budget.
Let’s start by looking at your costs. The main thing here is to draw a clear line between your essential spending and everything else. Go through your receipts and bank statements and add up everything you’re spending each month on necessities like rent, mortgage repayments, Council Tax and food. These are payments you really can’t afford to skip (although you should definitely check out our guide to Council Tax Debt to make sure you’re not being overcharged). Once those absolute essentials are taken care of, whatever’s left of your monthly income is “disposable”. With that information under your belt, you’re ready to start working out a budget.
Help with council tax debt