Newsletter Signup
© 2009-2010 my-local-community.co.uk ltd and its affiliates
Gyfieithu i'r Cymraeg
Managing your Money
Find the time to budget - Setting aside a few minutes a week is all it takes to review your money situation.
Using a budget calculator will help you work out your weekly or monthly income and spending. Try to stick to either weekly or monthly, and not a mix of the two.
Your income - Make a list of all your sources of income, for example your pay, benefits, pension income and tax credits. You may have money coming in from other sources, for example from rental income if you have a lodger or rent out a property you own.
Your spending - Don’t worry if you can’t account for every penny coming in – the most important thing is to know roughly where you stand. Be realistic. If you want a better idea of where your money is going, try and keep a spending diary by writing down what you spend each day for a week. Don’t forget occasional items (such as birthdays) and things that you pay for once a year (such as car tax and insurance).
Benefits and financial support - Some sort of financial support is available for most people – whether you're working, have children, are caring for someone, or are retired. Find out what you may be eligible for. Research by entitledto.co.uk revealed that in the UK over £ 8 billion a year is unclaimed in benefits and tax credits.
In these difficult financial times it’s worth checking that you are receiving all the benefits and tax credits you are entitled to. This process used to be very lengthy and at times complicated but now, thanks to this free website it couldn’t be simpler. The site is free and no personal identification is required so anonymity is assured.
Why not visit entitledto.co.uk too and work out how much you could claim - what have you got to lose?
Tax – (rates and allowances) - Make sure you’re not paying too much tax. Check your payslip to make sure you have the right tax code for your circumstances.
Shop around for savings - Check the rate of interest on your savings. You may be able to get a better rate by switching accounts or providers, but beware of any penalties. It’s a good idea to think about when and how often you’ll need to take out any money, to make sure that you can get at your money when you need it.
Cut back on your spending - If you need to cut back, a budget calculator may help you look for areas where you can do it. If you are thinking about cancelling insurance to make savings, consider how you’d cope if things were to go wrong. Be realistic – set targets and stick to them.
Review your Direct Debits to check you are not paying for any unwanted services. Perhaps you were given a free introductory offer but now you pay full price. Are you paying for a gym membership or magazine subscription that you no longer use?
Shop smartly
Whenever you shop, either in a store or online, there are often vouchers you can use to save money. Look in magazines or online for them. But remember not to buy something just because you have a money-off voucher – you may not need it anyway. Write a shopping list before you go shopping to stop you impulse buying things that you don’t need. Set an affordable limit on gifts being bought for birthdays and Christmas before going shopping, and stick to your limit.
Shop around - If you are looking for a good deal on your gas, electricity or phone, always compare prices. You can shop around for almost everything – store cards, credit cards, insurance, and even your mortgage. But be wary if you are considering switching from one contract to another, as there may be penalties.
Check you are paying by the cheapest method - Often paying by Direct Debit is the cheapest method, and some companies may charge you a handling fee if you pay by credit or debit card, so always check.
Don’t buy insurance you don’t need - Check whether you’re already covered by existing insurance before you take out new cover.
Using a budget calculator will help you work out your weekly or monthly income and spending. Try to stick to either weekly or monthly, and not a mix of the two.
Your income - Make a list of all your sources of income, for example your pay, benefits, pension income and tax credits. You may have money coming in from other sources, for example from rental income if you have a lodger or rent out a property you own.
Your spending - Don’t worry if you can’t account for every penny coming in – the most important thing is to know roughly where you stand. Be realistic. If you want a better idea of where your money is going, try and keep a spending diary by writing down what you spend each day for a week. Don’t forget occasional items (such as birthdays) and things that you pay for once a year (such as car tax and insurance).
Benefits and financial support - Some sort of financial support is available for most people – whether you're working, have children, are caring for someone, or are retired. Find out what you may be eligible for. Research by entitledto.co.uk revealed that in the UK over £ 8 billion a year is unclaimed in benefits and tax credits.
In these difficult financial times it’s worth checking that you are receiving all the benefits and tax credits you are entitled to. This process used to be very lengthy and at times complicated but now, thanks to this free website it couldn’t be simpler. The site is free and no personal identification is required so anonymity is assured.
Why not visit entitledto.co.uk too and work out how much you could claim - what have you got to lose?
Tax – (rates and allowances) - Make sure you’re not paying too much tax. Check your payslip to make sure you have the right tax code for your circumstances.
Shop around for savings - Check the rate of interest on your savings. You may be able to get a better rate by switching accounts or providers, but beware of any penalties. It’s a good idea to think about when and how often you’ll need to take out any money, to make sure that you can get at your money when you need it.
Cut back on your spending - If you need to cut back, a budget calculator may help you look for areas where you can do it. If you are thinking about cancelling insurance to make savings, consider how you’d cope if things were to go wrong. Be realistic – set targets and stick to them.
Review your Direct Debits to check you are not paying for any unwanted services. Perhaps you were given a free introductory offer but now you pay full price. Are you paying for a gym membership or magazine subscription that you no longer use?
Shop smartly
Whenever you shop, either in a store or online, there are often vouchers you can use to save money. Look in magazines or online for them. But remember not to buy something just because you have a money-off voucher – you may not need it anyway. Write a shopping list before you go shopping to stop you impulse buying things that you don’t need. Set an affordable limit on gifts being bought for birthdays and Christmas before going shopping, and stick to your limit.
Shop around - If you are looking for a good deal on your gas, electricity or phone, always compare prices. You can shop around for almost everything – store cards, credit cards, insurance, and even your mortgage. But be wary if you are considering switching from one contract to another, as there may be penalties.
Check you are paying by the cheapest method - Often paying by Direct Debit is the cheapest method, and some companies may charge you a handling fee if you pay by credit or debit card, so always check.
Don’t buy insurance you don’t need - Check whether you’re already covered by existing insurance before you take out new cover.
Your home contents insurance may cover you for loss of personal items (such as credit cards and mobile phones) while away from home, or breakdown of your electrical items.
Your employer may offer health or travel insurance as part of your benefits package, so it may be cheaper to take it out with them.
Your bank account may include free insurance.
Save on your driving costs - The way you drive your car affects how much fuel you use. Directgov's tips on Buying and driving greener cars could help you save one month's fuel over a year.
Save energy in your home - Find out how you can save money and energy around the home. You can also check whether you would be eligible for a grant to help pay for insulation.
Keeping track - Now that you’ve got your budget sorted, here are some ideas to help you stay in control.
Make a note of when your annual payments are due, for example car tax and insurance. You’ll be better prepared if you start budgeting for these in advance, and the reminder could also help you avoid late-payment charges.
Think about setting up Direct Debits for payments like utility bills or credit cards, so that the money is automatically paid from your account when it’s due. This will help spread your payments so you can budget better and help avoid late-payment charges. But make sure there’s enough money in the account to cover them, otherwise you may be charged by your bank.
Check your bank and credit-card statements as soon as you get them to review your spending. Know roughly what your balance should be. Contact the bank or credit-card company if you think anything looks wrong.
Build up some savings - It’s also usually a good idea to put some money aside for emergencies or possible expenses, such as replacing expensive household items if they’re not covered by your insurance. As you won’t know when you’ll need this money, make sure you can access it easily.
You may also want to start saving up money for Christmas, a special occasion, or a holiday. If you put aside a little each month and make sure you’re getting a good interest rate, it will soon build up.
Review your budget regularly - Make sure you review your budget regularly. If your circumstances change, for example your income or your bills rise or fall, look at it again.
You should also review your budget if you are considering making a big financial decision, such as a new car or home improvement.
Financial goals - Think about your financial goals and when you want to reach them. They could be:
paying off or reducing your debts;
taking out insurance to protect your family or home if things go wrong;
saving up for a holiday or a deposit for a home; or
saving for your retirement.
Getting into difficulties -If you feel you are starting to struggle with your debts, read our Dealing with debt guide to give you some ideas of what you can do.
If you find that the situation is spiralling out of control, try not to panic or ignore the problem. It’s best to act sooner rather than later, as the people you owe money to may be able to help you manage your repayments.
You’re not alone either, as expert help is available. Several organisations offer a free service, either face to face or by phone. These advice agencies can help you tackle your debts.
Financial
Obtain a copy of your Credit Report
Getting a copy of your credit report is fairly simple and allows you to keep track of your credit history and check for errors.
Credit ratings for millions of individuals in the UK are held by two main agencies:
- Equifax (www.equifax.co.uk)
- Experian (www.experian.co.uk)
The information they hold comprises your credit history and will include details of unpaid bills, county court judgements (CCJ’s) and any previous applications for credit. You can order credit reports from both companies for £2.00, you should received this within 15 days.
Review the report closely for errors. If you find any errors then inform the agency where you received the report from that you believe the information is an error. Include copies of any documentation to support your position.