If you want to feel more in control of your money, create a household budget
4-step plan for making a budget
Making a budget for your household will help you keep on top of your money because:
- you’ll always know what you’re spending your money on, and have a plan to stick to each week or month,
- you can easily see where you could save money,
- it helps you be more prepared for emergency costs (like getting the car fixed),
- it can make getting out of debt feel easier and less stressful.
To make your budget you can:
- write it down on paper
- make a spreadsheet
- use an online tool
Many people find making and sticking to a budget easier when they use a free online tool, like IE Hub. These tools are very helpful if the amount of money you get and spend changes from month to month.
Record all the money your household gets (your household income)
This could be from:
- Employment
- Self-employment
- Pension
- Student loans/grants
- Benefits
- Child Maintenance
- Board or rental income
- Any other income you are receiving
Add all these up to work out how much you get overall.
Or, sign up for the IE Hub budgeting tool for free and let it do the work for you. It can access your bank accounts (if you say that’s ok), list the money you get and spend, and do the maths for you.
Add all these up to work out how much you get overall.
Or, sign up for the IE Hub budgeting tool for free and let it do the work for you. It can access your bank accounts (if you say that’s ok), list the money you get and spend, and do the maths for you.
Record how much you spend for your household, and what you spend it on (your household spending)
To do this, check your bank statements and bills. Include everything you spend your money on. Even the things you only pay for now and then. But, do not include debt or arrears payments.
Your spending could include:
- Household bills
- Water
- Energy
- Council tax
- Mortgage or rent
- Phone and broadband
- Insurance and emergency cover
- TV, game pass, magazine or news subscriptions
- Childcare
- Car and travel costs
- Car tax
- Car MOT
- Busses, trains, and taxis
- Food and toiletries
- Household food/shopping
- Food costs for work, school, etc
- Personal care costs
- Dentist,
- Opticians,
- Hairdressers,
- Personal care subscriptions or payments,
- Clothes,
- School uniform
- Others
- Hobbies, days out, and things you do as a family or with friends
- Smoking, alcohol, gambling
- Yearly costs like birthdays and Christmas
- Emergency costs (how much do you spend, on average, on things like replacing broken white goods, home and car repairs, etc.)
- Anything else you are spending money on
Add all these up to work out how much you spend overall.
Or, sign up for the IE Hub budgeting tool for free and let it do the work for you. It can access your bank accounts (if you say that’s ok), list the money you get and spend, and do the maths for you.
Record your debt repayments
First, record all your repayments. Include the accounts you are on top of and the ones you are behind on (if any). They could include:
- loans,
- credit cards,
- car payments,
- online shopping retailers,
- buy now, pay later accounts, like Klarna, PayPal, furniture or homeware accounts, etc.
Now, record the arrears payments you make (on the accounts you are behind on, if any), like this:
Name of company: Honey Bee Energy
Outstanding balance: £244
Repayment amount: £16 per month
Work out your budget
Subtract (or take away) your household spending from your household income, like this:
Income: £1,500
Take away spending: £1,100
Difference: £400
The difference between your income and spending is called your ‘disposable income’
Next, add up your debt repayments and arrears payments. Then, take away your debt repayments from your ‘disposable income’, like this:
Disposable income: £400
Take away debt and arrears repayments: £300
Difference: £100
Doing this will help you see if you can afford your repayments. Contact your creditors if:
- you don’t have enough money to pay your repayments or,
- if making your repayments means you can’t save for emergencies.
Tell them what is happening, and ask them how they can help.
If making your budget seems too complicated or you don’t have time, sign up to IE Hub budgeting tool for free, and let it do the hard work for you.
IE Hub is a free online budgeting tool that anyone can use.
Get a budget made for you
IE Hub takes you step-by-step through the process of making a budget.
You put in your spending, income, debt and arrears payments. Then, IE Hub does all the calculations for you, and makes your budget.
From there, you can see at a glance:
- where you’re spending your money
- how much you have left until payday, and
- if you can afford your debt and arrears repayments.
- When things change – like if your income goes down or you finish paying off a debt – you can update IE Hub, and it will create a new budget for you in minutes. That way, you’re always on top of your money.
IE Hub has tools that automatically tell you if you could:
- spend less on water, telephone or broadband by switching to a different tariff, and
- get more income by applying for benefits, grants, or schemes that you are eligible for but missing out on.
With this information being sent to you automatically, it’s easier for you to make sure you’re making the most of your money.
Easily show the companies you owe money to that you cannot afford your repayments
If you need to work with your providers to change your repayments or make an affordable repayment plan, they often ask you to run through your budget with them over the phone.
IE Hub lets you share your budget with any of your providers if you need to, instead of doing it over the phone. This saves time, and can help you feel more comfortable on these phone calls.
