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Budgeting – knowing how to budget is a basic life skill that you need to help make ends meet. The more control you have on this the more money you will have left to spend or save each month. 


  1. See what you’re spending. Look at the last 3 months bank statements or scroll down on your banking app to see where your money is going and make notes – maybe too much Deliveroo, drinks or those trainers you just had to have – no ones perfect we all have our spend vices! You may find useful to see how much money you have left until your next payday 
  2. Know where it’s going.The money you spend breaks into two types, it’s for needs or wants. I need £30 to pay for gas/electric and I want £20 to pay at McDonalds. So you need to separate your spend into needs and wants (see link video to show you how to do this link or tool in link here. You need to try to reduce your wants so that you have more money left (this is sometimes called disposable income). If you have more money left each month you can build up your savings or keep it for big needs that come up unexpectedly like a broken boiler or new tires for your car. It’s nice to have a little bit extra left to put aside each month 
  3. Split your bank accounts.We all have fixed costs such as direct debits for bills or rent that we pay regularly.These needs are fixed costs, so ask yourself how much I need to put into fixed costs as this money is gone and could all be in one account so you know all your fixed costs are covered. 
  4. Open a spending account. Have a second bank account and transfer only what you can afford to spend each month (knowing your fixed costs are covered in your main account) This can cover spend on food, travel/petrol and going out to eat so you can enjoy this guilt free spend. Bank accounts such as Monzo and Starling are easy to open and you can have pots for each type of spend you want in this account 
  5. Save money left over. Once you’ve paid all your fixed costs like bills and planned your spend you may actually have some money leftover each month. This means that you can look to save some money and get paid interest on it. See our best savings accounts and see which one is right for you 


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This information is intended for editorial purposes only and not  intended as a recommendation or financial advice