You need to budget to make sure your income is more than the amount you spend. A personal budget will help you to make the most of your money, plan for the future and negotiate with any people you owe money to.
Why budget?
With an accurate budget, you'll be able to cut out unnecessary expenses and save money, or stop running up big debts. If you already have debt problems a budget will show you how much spare cash you have. This will help when you talk to your creditors (those you owe money to), because you'll be able to make realistic offers to pay them back over a set period of time.
Where do I start?
Make lists of your income and your outgoings and put a value by each item. Your income may include salary, benefits, child tax credit, rent from lodgers or contributions from adult children. Outgoings could be rent, mortgage, tax if self-employed, council tax, utility bills, food, clothes and petrol. Follow the links on this page for more advice on how to plan your budget.