How to manage your money: A complete guide

Money worries are one of the biggest reasons people seek support, and it’s not always easy to know how to stay on top of your finances. Whether you’re struggling to make ends meet, planning ahead for the future, or looking to improve your financial wellbeing, this guide will help you take control of your money.

We cover:

  • Understanding your money
  • Setting and tracking a budget
  • Saving and investing
  • Managing a drop in income
  • Coping with financial stress
  • Managing debt
  • How Ben can support you

1. Understanding your money

The first step to financial wellbeing is understanding your money: what comes in, what goes out, and how it’s spent. Everyone’s situation is different, so it’s important to focus on your finances rather than comparing yourself to others.

Track your income and expenses

Start by listing everything that comes in (salary, benefits, freelance income) and everything that goes out (rent, bills, groceries, subscriptions). This gives you a clear picture of where your money is going.

Example Monthly Budget

Category

Budget (£)

Actual (£)

Notes

Salary

2,000

2,000

Net pay

Benefits

150

150

Universal Credit

Rent

700

700

Fixed

Utilities

150

140

Slight savings

Groceries

200

180

  

Transport

100

90

  

Entertainment

50

60

Budgeted treats

Tip:
Track your spending for a few months to spot patterns and identify where you could save.
Apps like Money Dashboard or Yolt can make this easier.

2. Setting a budget

Budgeting doesn’t have to be restrictive - it’s about making your money work for you.

Steps to create a budget

  1. Calculate your total monthly income.
  2. List all essential expenses (rent, bills, food, transport).
  3. List non-essential expenses (subscriptions, dining out, hobbies).
  4. Decide on a realistic amount to save each month.
  5. Include money for unexpected costs (repairs, medical bills).

Budgeting Tips:

  • Budget for fun to avoid feeling restricted.
  • Review and adjust your budget monthly.
  • Consider using a budget planner like MoneySavingExpert’s tool.

Needs vs Wants table

Expense

Essential?

Notes

Rent

Yes

Fixed

Groceries

Yes

Healthy food

Netflix

No

Optional entertainment

Gym

No

Optional, can pause if needed

3. Saving and growing your money

Even small savings add up over time. Consider these options:

Savings accounts

Type

Access

Pros

Cons

Best For

Easy-access

Anytime

Flexible

Lower interest

Emergency fund

Fixed-rate

Locked for 1–5 years

Higher interest

Cannot add more funds

Long-term savings

Regular saver

Monthly deposits

Higher interest

Limited withdrawals

Medium-term goals

ISAs

Individual Savings Accounts (ISAs) offer tax-free interest. Check if an ISA is right for your goals and remember the annual contribution limit is £20,000.

Premium bonds

Instead of interest, you’re entered into a monthly prize draw. Chances of winning the top prize are slim, but it’s a low-risk saving option.

Investments

For long-term goals, consider funds, shares, pensions, or bonds. Investments carry risk, so only invest money you don’t need immediately.

Quick Tip:
Aim to save at least 3–6 months of essential expenses in an emergency fund.

4. What to do if your income drops

Losing income can be stressful, but taking immediate action can protect your finances.

Mortgage

  • Contact your lender to discuss options (mortgage holiday, extending term, interest-only payments).
  • Check insurance policies like payment protection insurance.

Renting

  • Talk to your landlord about repayment plans or early termination options.
  • Social housing tenants can ask their tenancy support officer for help.
  • If on Universal Credit, speak to your work coach.

Maximising benefits

  • Many people miss out on benefits they’re entitled to.
  • Use a benefits calculator like Turn2Us to check eligibility.
  • Self-employed? Read about Universal Credit and self-employment: Gov.uk guide.

Drop in income checklist

Area

Action

Contact

Mortgage

Discuss holiday or term change

Lender

Rent

Arrange affordable payment plan

Landlord / Housing Officer

Benefits

Check entitlements

Turn2Us

5. Coping with financial stress

Financial stress affects both mental and physical health.

Signs to watch for:

  • Trouble sleeping
  • Feeling anxious, low, or irritable
  • Headaches or other physical symptoms
  • Avoiding friends or family

Coping strategies:

  • Stay active and maintain routines
  • Face money worries by tracking and budgeting
  • Seek debt advice if needed
  • NHS guide: Coping with financial worries

Quick Tip:
Recognise unhealthy coping mechanisms (like excessive drinking) early and seek support.

6. Managing debt

Debt can feel overwhelming, but taking it step by step helps you regain control.

  • List all debts and interest rates.
  • Prioritise high-interest debts first.
  • Consider speaking to a debt advisor.

Debt prioritisation table

Debt type

Interest rate

Urgency

Suggested action

Credit Card

18%

High

Pay more than minimum

Overdraft

10%

Medium

Use only if necessary

Personal Loan

8%

Medium

Pay monthly

7. How ben can help

We are here for anyone who works or has worked in UK Automotive and their family dependents.

Digital support:
SilverCloud offers free programs to manage money, stress, sleep, and wellbeing.

Additional resources

Takeaway:
Managing your money is about understanding your finances, creating a realistic budget, saving smartly, and seeking help when needed. Small steps today can prevent financial stress tomorrow.