This week we provide advice from Citizens Advice Rural Cambs on how to manage your money.

Priority Bills

These are the ones ones that you need to pay first because if you don’t the consequences can be very serious – for example - if you don’t pay your rent you may lose your home, if you don’t pay court fines you could face prison.

he most important bills to pay first are:

  1. Housing rent and service charges (or mortgage if you own / part own your home)
  2. Council Tax – even if you qualify for your local Council Tax Reduction Scheme it is likely that you will have to make a contribution to your council tax bill – find out how much you need to pay from your local district council
  3. Electricity and gas bills
  4. Court fines or child maintenance that you are responsible for
  5. TV licence

Make a budget plan

Making a budget plan will tell you how how much money you have coming in, how much you need to allow for essential costs and how much you have left towards other things you need.

It is your most important money tool. It helps you stay in control, feel less stressed and more confident about the future. It also provides evidence to the people you live with or anyone you owe money to about what you can afford and if cutbacks can be made.

  • Work out what money comes in
  • Work out the main expenses you have
  • Find out if you have money left over each month

Remember, a budget is something that you work on and improve. You may also find when you do your budget that you have more money going out than coming in – this is very usual and why budgets are so important so that you can understand what is happening and take steps to stop the situation getting any worse.

Tips for making a budget

  • Gather all the information you think will help – bank statements, bills, receipts and keep in one place – a large folder or envelope
  • Don’t forget about smaller items – these can quickly add up.
  • Remember occasional costs, e.g. birthdays, repairs, new shoes – it is these costs that tend to cause problems if you have not allowed for
  • Do your budget with a friend or support worker – use someone else to help you think through everything and to give you encouragement
  • Ask for help if you need it – there are lots of organisations who can offer free and independent advice to help you work out your budget.