Budgeting tips when you’re on a low income
Stress anxieties are to familiar, causing distress and sometimes uncontrolled behaviour. Family budget is under attack from all side. Causing breakdown in relationship, dysfunctional household with final result divorce. Are you feeling the economic recovery?
Managing your money on a low income takes careful
organisation – here are a few positive steps you can take to make it easier.
Work out your budget
First of all, you have to know what money is coming
in and what’s going out – and when. Making a budget gives you a clear picture
of where your money goes, and shows you where you might have a chance to save
money. It will also help you see whether you are living within your means.
Look at ways to cut
costs and shop smartly
It can be difficult to change the amount of money
you have coming in – but you have much more control over what goes out. Your
budget shows you where your money’s going, so you can see if there’s anything
you can easily cut back on, or shop around for a better deal.
As a first quick and easy step, use our cut-back
calculator to see how you can save by cutting out things you buy regularly that
are perhaps non-essentials. This isn’t to say that you shouldn’t enjoy treats,
but you might be surprised at how much small things – like a daily coffee when
out – add up!
Saving money around the home and when out
Follow the links below for more tips on how to cut
back around the home and when out and about.
Energy saving grants if you’re on a low income
Did you know?
Turning down your heating by one degree can save
around £65 a year in a typical home.
Source: Energy Saving Trust
If you make your home more energy efficient you’ll
be able to save money on gas and electricity. If you’re on a low income you can
often get an energy efficiency grant to help with the costs.
Get holidays for less
If you want to get away, it pays to shop around.
There are huge savings to be made if you do.
It’s easier than you might think to check that
you’re getting all the benefits you’re entitled to if you’re on a low income.
Some benefits are one-off payments to help with a
particular set of circumstances like cold weather, while others, like Income
Support, top up your regular income. A careful check can make sure you’re
getting everything you should.
Follow the link below for an overview of what’s
available and to link to more information.
Emergency borrowing to
make ends meet
In some circumstances, you might be able to get an
interest-free government loan to help you make ends meet at a difficult time.
Budgeting Loans
If you're on a low income and claiming benefits you
may be able to get an interest-free Budgeting Loan from the Social Fund. This
can help with things like:
·
furniture or
household equipment
·
clothing or
footwear
·
advance rent or
removal expenses for a new home
·
travelling
expenses
·
money to help
you look for or start work
·
improving,
maintaining or securing your home
Be very careful of other kinds of borrowing. Things
like payday loans, log book loans and doorstep lending can seem like an easy
source of cash, but they could end up making a bad situation worse.
They’re often a
very expensive way of borrowing money – so always try to find other ways to
borrow if you can. Ask your family if they can help, or consider joining a
credit union – they’re set up to offer banking services to people who would
otherwise find them difficult to get. Follow the links below to find out more.
Adapted from https://www.moneyadviceservice.org.uk
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