Step 2: Budget your spending
It's impossible to make a plan you can stick to without knowing exactly how much money you have available and where the rest is going. And it's not until you put it all down on paper (or screen) that you'll get a really clear view of your spending and where you can make savings.
Things to consider:
Include all your expenses
Just going through your bank statements or writing down all your bills won't give you a realistic view. Think about everything you buy each month, from food and travel to clothes and going out. You can use the Budget Planner to help you.
Do you have any other income apart from your main job?
Perhaps your partner gives you cash for their share of bills? Do you receive benefits? Or do you do extra work from time to time? It's important to include all your sources of income.
Don't forget things you don't pay for every month
Be sure to include all your bills and expenses, not forgetting bills that come once a year or quarterly like car tax and insurance, or your TV Licence. And you’ll need to factor in things like holidays and other non-regular costs.