In the current economic climate, many families and individuals in the UK are struggling to make ends meet. The rising costs of food, fuel, housing and other expenses often make it difficult to balance the household budget. However, with some planning, awareness of support, and budgeting discipline, it is possible to take control of your finances. Keep reading for tips on assessing your financial situation, finding available support, reducing outgoings, and better managing income and expenditure.
Taking Stock of Your Finances
The first step is to clearly understand your financial position. Make a list of all sources of income coming into the household each month, including earnings, benefits, pensions, maintenance payments, and any other regular monies. Then make a list of all your outgoings – rent/mortgage, utility bills, food, transport, loan repayments and all other spending. This exercise will highlight any deficit between income and expenditure and help you identify areas where cutbacks may be possible.
Be sure to check entitlement to benefits and tax credits, as many families miss out on financial support they qualify for. Use online benefits calculators to find out what you could claim. The government’s cost of living support page provides information on the wide range of support available.
Finding Available Support
As well as claiming all the state benefits you are entitled to, be aware of other support available. For example, if you have school-age children, applying for free school meals could save a significant amount each week. For families who foster with foster agencies like fcascotland.co.uk, the fostering allowance is a payment available to cover the costs of looking after foster children.
On top of this, check whether you’re eligible for schemes that reduce energy bills, council tax or water rates. Many energy providers have hardship funds and grants to help customers struggling with bills. Your local council and trusted charities can also point you towards sources of financial support. Don’t be afraid to ask for help if you are facing real hardship.
Reducing Outgoings
The best way to balance expenditure with income is to cut back on unnecessary spending. Review all your regular outgoings to see where savings can be made:
- Can you switch to cheaper deals for phone, broadband, TV packages and insurance?
- Meal plan and shop carefully to cut grocery and takeaway bills
- Compare gas and electricity prices and switch suppliers if cheaper deals are available
- Walk, cycle or use public transport to cut fuel costs
- Avoid impulse purchases and consider cheaper entertainment options
Even small changes like buying value grocery ranges and taking packed lunches to work can cumulatively save a considerable amount over a year.
Managing Your Budget
Once you have maximised your income sources and reduced unnecessary spending, it’s time to budget. Calculate your total regular income and subtract essential bills like rent, utilities, food bills, transport and debt repayments. The remainder is what you have to spend on other costs.
Coping with rising costs and squeezed budgets is challenging for households across the UK. However, by being organised, seeking out financial support, cutting back where possible and budgeting carefully, it is possible to achieve a balanced budget. Making the effort to understand your full financial position, look for help available, and control expenditures can provide some much-needed peace of mind and financial stability.