Managing your money

Create a budget

The first step is to create a detailed budget. You can use our budget planner to note everything that comes in and out of your account, including your salary, any benefits, pensions, bills etc. It’s important that you’re detailed and honest – include things like your lunch at work and drinks on nights out. Ideally, you should be spending less than you earn each month. If not, use the planner to see where you could cut down your outgoings. If your income is low, or has been reduced due to a change in circumstances, you may be entitled to benefits that you are not currently claiming. You can use this benefits calculator to check.

Start saving

Setting money aside each month – no matter how little – is a good way to start saving towards your financial goals. So, whether it’s a big holiday, a house deposit or money for unexpected bills, you’ll be covered. You can open a Savings Account with as little as £1, and start earning interest. Alternatively, choose to save in an ISA (Individual Savings Account) to earn tax-free interest up to a certain amount.

Take control

Once you’ve created a budget, there are things you can do to organise and take control of it. Wherever possible, pay your bills by Direct Debit or standing order. Not only does it mean that your payments won’t be late, but you could also cut costs, as some companies offer discounts if you pay automatically. It’s a good idea to set these payments up 1 or 2 days after payday, so that you know you’ll have enough in your account. You could also try online banking and our app, so you can check your balances and account details 24 hours a day.

Does your income vary each month?

If you don't receive the same income each month, it's important to make sure you have enough to cover your essential living costs. Work out your monthly outgoings to see the minimum amount you’ll need each month to cover them. Once you’ve got that, you can also identify areas that can be cut back. If you find it hard to manage your outgoings, you could also set up a separate bank account specifically for regular payments, such as rent and bills. If the money is automatically taken from that account, you can ensure everything is paid on time.