Budgeting is the foundation of financial control. This guide walks through the steps to set up your first household budget.
Step 1: Know what you earn
List all net income — your take-home pay after tax and National Insurance. Include any benefits, rental income or side income.
Step 2: List all outgoings
Fixed: rent/mortgage, council tax, insurance, loan repayments. Variable: food, fuel, clothing. Discretionary: takeaways, entertainment, subscriptions.
Step 3: Find the gap
Income minus outgoings = your surplus (or deficit). If it's negative, you need to reduce spending or increase income.
This is general information, not financial advice. For personalised guidance, contact a free debt service like StepChange (stepchange.org) or National Debtline.