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Want it done for you? Simple UK Monthly Budget Planner, £2.99

Free guide | Budgeting

How to set up a monthly budget in the UK

Five plain steps to a budget that fits UK pay and bills, and a quick calculator for what is left over at the end of the month.

Your month

Take-home pay plus any other regular income, such as Child Benefit. Not sure? Try the take-home pay calculator.
Rent or mortgage, council tax, energy, water, phone, insurance, subscriptions and debt payments
Food shop, travel or fuel, eating out, clothes, children and personal spending
What you put away: an emergency pot, Christmas, holidays, car repairs

Left over each month

£0
Money in
Money out
Bills, as a share of money in
Everyday spending, as a share
Savings, as a share

Planning tool, not financial advice. A quick sum for one month. The steps below explain what to count in each box.

The full spreadsheets

Keep your budget in a spreadsheet that does the sums.

Simple UK Monthly Budget Planner spreadsheet: the dashboard on a laptop and phone

Paid monthly, or just starting

Simple UK Monthly Budget Planner

  • One budget page: money in, 11 bills, 7 spending lines and 3 savings pots
  • 12 months of actuals, with council tax over 10 months and the TV licence built in
  • A one-screen dashboard of what is left each month, and a Checks tab

£2.99one-off, instant download

Get it on Etsy

Excel and Google Sheets | Secure checkout on Etsy

Budget by Payday Planner spreadsheet: the dashboard on a laptop and phone

Paid weekly or 4-weekly

UK Budget by Payday Planner

  • Every bill and pot turned into an amount per payday: weekly, 4-weekly or monthly
  • Up to 40 bills with due dates, and set-aside pots for the big yearly costs
  • Council tax on 10 or 12 instalments, evened out across your paydays

£5.99one-off, instant download

Get it on Etsy

Excel and Google Sheets | Secure checkout on Etsy

Saving for Christmas? Try the free Christmas savings calculator. Paying off cards or loans? See when you will be debt free.

Want the whole set? The UK Household Money Kit is four spreadsheets for £13.79, against £23.36 bought separately (save 40%).

How it works

Setting up a monthly budget, step by step

1. Start with what actually lands in your bank

Budget from your take-home pay, after tax, National Insurance, pension and student loan, not your salary. Your payslip shows it, or use the free take-home pay calculator. Add any other regular money in: a partner's pay, Child Benefit, maintenance or a side income.

Paid weekly or every 4 weeks? There are 52 weekly or 13 four-weekly paydays a year, so a month's pay is weekly pay x 52 / 12, or 4-weekly pay x 13 / 12. Some months you get an extra payday; budgeting by payday can be easier (see below).

2. List your fixed bills

Rent or mortgage, council tax, gas and electricity, water, phone and broadband, insurance, the TV licence (£180 a year, or £15 a month), subscriptions, childcare and any loan or card payments. Your bank statements and direct debit list are the quickest way to find them all.

Council tax is usually paid in 10 monthly instalments from April to January, with nothing in February and March. You can ask your council for 12 smaller payments instead, which makes a monthly budget simpler.

For bills paid yearly or quarterly, such as car insurance or the MOT, divide by 12 and put that much aside every month.

3. Set an amount for everyday spending

The food shop, travel or fuel, eating out, clothes, children's costs and personal spending. Look back over the last two or three months of bank statements to see what you really spend, then set a figure you can stick to.

4. Pay yourself on payday

Move your savings on payday, before you spend, rather than saving what is left at the end. Start with an emergency pot, then save for the costs you know are coming: Christmas, birthdays, holidays and car repairs.

5. Check what is left, then keep score

Money in less bills, spending and savings is what is left over. If it is below zero, look at everyday spending first, then shop around for bills when they come up for renewal. A common rule of thumb is 50/30/20 (half on needs, 30% on wants, 20% on savings and extra debt payments), but with UK rents it often does not fit: treat it as a starting point, not a target.

Each month, write down what you actually spent next to your budget and adjust. A budget that changes with you is one that lasts.

By calendar month, or by payday?

If you are paid monthly, a simple monthly budget is all you need. If you are paid weekly or every 4 weeks, months do not line up with your pay, and a budget by payday shows what each payday has to cover.

If the numbers do not add up

If debts are taking more than you can afford, free, confidential advice is available from StepChange, Citizens Advice and MoneyHelper, which also has a free budget planner.