✅ Step 1: Know Your Take-Home Pay

• Look at your monthly income after tax, NI, and pension contributions.

• If you're paid weekly or fortnightly, calculate your monthly average.

💡 Tip: Use your latest payslip or HMRC app to see real take-home income.

✅ Step 2: Track Your Spending

• Track every penny for at least a month.

  • Essentials: rent, bills, food, transport

  • Non-essentials: takeaways, entertainment, subscriptions

💡 Tip: Use free UK apps like Emma, MoneyDashboard, or Plum, or try Monzo/Starling’s built-in tracking.

✅ Step 3: Create a Budget Plan

Use the 50/30/20 rule as a guide:

• 50% Needs – rent, utilities, council tax, food, transport

• 30% Wants – dining out, hobbies, Netflix, shopping

• 20% Savings & debt – emergency fund, savings goals, debt repayments

💡 Tip: Adjust percentages if needed — e.g., if London rent eats 60%, shift more from “wants.”

✅ Step 4: Set Clear Monthly Limits

• Based on your spending categories, give yourself realistic caps.

• Use banking tools to set “spending limits” or alerts.

💡 Tip: Add a “miscellaneous” category for surprises so you don’t blow your budget.

✅ Step 5: Automate What You Can

• Automate:

  • Rent/mortgage

  • Bills

  • Debt payments

  • Savings (yes, automate this too!)

💡 Tip: Schedule savings transfers for the day after payday — you won’t miss what’s already gone.

✅ Step 6: Review Weekly & Adjust Monthly

• Check in once a week to stay on track.

• Each month, review what worked and tweak next month’s budget.

💡 Tip: Use bank account “pots” (Monzo, Starling, Chase) to split your money visually.

✅ Step 7: Cut Back Smartly

• Use comparison tools like:

  • Compare the Market (insurance, energy)

  • MoneySuperMarket

  • Look After My Bills

• Cancel unused subs (gym, apps, delivery services).

💡 Tip: Even saving £20–£50/month here and there adds up quickly.

✅ Step 8: Set Short-Term & Long-Term Goals

Examples:

• Short-term: save £300 for Christmas

• Long-term: build £2,000 emergency fund or save for a house deposit

💡 Tip: Write them down or track them in apps — this keeps you focused.

📝 Summary

1. Know your net pay - Check payslip or HMRC app

2. Track your spending- Use UK apps (Emma, Starling, Monzo)

3. Budget plan - Try 50/30/20 rule

4. Set limits- Use spending caps in your app

5. Automate payments - Especially savings

6. Weekly check-in - Monthly review = better control

7. Cut back smart - Use comparison sites

8. Set savings goals - Short & long-term both matter