2. Allow for the basics

Drawing up a household budget

Start with the basics

Deciding where and how to spend money is a personal thing, but there are basic necessities that we all need to spend money on, let’s make sure these are allowed for first, these are:

  - Rent & any rent in advance payment

  - Council Tax

  - Gas & Electricity or oil

  - Water charges

  - Groceries

 Record these in the spaces on your budget form or put them into an online budget tool or app.

Unsure how much you spend? It is important that the amount of money you think you spend is   correct otherwise the budget won't work out. If you are unsure, record every thing you spend on a spend diary downloadable from this page, or use your own version. Record every thing you spend for a month and then use these figures so that you know your budget is correct.

When you have all your figures and are happy these are correct it's a good time to check what you have left.  Start with your total income figure and take away the amounts recorded next to each of the items on your basic budget, this will tell you what money you have left.