Budget time: Is your plan in place yet?
October 2, 2024
Budget 2025 announced a series of changes to help households facing financial pressure. But challenges remain for consumers struggling to meet high costs.
Now is the time to take control of your own budget. If you are unsure where to start, do not worry! We have some straightforward tips to get you up and running.
Work out a budget
As basic as it sounds, creating a household budget really helps. Focus on the amount of money you have coming in and what you spend it on. Our budget planner Money Tool will show you all your regular income and expenses.
You will need to look at heating and electricity costs; house, life, car and health insurance; phone/ broadband charges; rent or mortgage payments; grocery bills and subscriptions.
Cut your costs
You might have to make a few sacrifices when getting to grips with your daily spending. It is easy to get into the habit of spending money on trivial things we could do without, such as that daily coffee or “must-have” item you saw online!
Use our spending calculator to figure out how much money is going on these items that you may not have budgeted for. You will be surprised at how it all adds up! Our calculator will help you figure out where you can cut back and what you can cut out, to help save you extra money.
Set up a savings plan
Having figured out what you are spending and how much you can afford to save, consider opening a savings account. Setting up a separate savings account makes sense as savings accounts normally offer higher annual interest rates than current accounts.
You can compare the available savings account options using the regular savings comparison tool. Put away a regular amount each month and watch it stack up!
Clear credit card debt
Your credit card spending may be tripping you up financially. If you are paying a higher interest rate than you need to, you end up paying more on your balance.
If you do not pay your balance off in full every month, you will have to pay the interest. It is important that you pay as much as you can afford and not just the minimum repayment. This will reduce the time it takes to clear your debt.
Top Tip
Save money on your credit card by switching to a lower interest rate. Our credit card comparison tool shows the different rates available.
Switch providers
Review your household bills and identify where you can get better value. Shopping around can save you a lot of money. Car, house and health insurance can all be switched annually or renegotiated with the same provider. The same goes for your broadband and electricity bills.
You may need to put the groundwork in by calling or emailing different providers, but it pays off with a better deal! You can also switch your mortgage to another lender or to another mortgage option provided by your lender.
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