Everyone's circumstances are different, but a good place to start when making any kind of financial plan is to find out exactly what's coming into your bank account and what's going out.
Look at your income, savings, bills and other outgoings and take a note of what is leftover at the end of the month. Understanding this will help you feel prepared to start making plans and budgets.
There are a few things to think about:
- What's causing you the most worry? Could you deal with that first?
- What bills or expenses do you need to prioritise?
- What support is available?
- Are you entitled to any benefits?
Get support from MoneyHelper
Read our guide on Ways to make your money go further.
Now, more than ever, it’s important to find out if you’re entitled to benefits. many people don’t even realise they could get extra support. In fact, research has found that at least £15 billion of benefits were left unclaimed in 2020, with over 7 million families missing out.
You can use benefit calculators to find out what you might be entitled to. There are some key details you’ll need to have to hand:
- Any savings
- Your single or joint income
- Your single or joint existing benefits
- Any income from a state or personal pension
- Any outgoings such as childcare, rent, etc
Keep in mind that money taken from your pension (over 25% tax free entitlement) is treated as additional income and may impact your eligibility to claim benefits.
The government website has some useful benefit calculators and can help you find out what benefits you could be entitled to.
If you’re on a low income, not working or unable to work, you may be entitled to claim Universal Credit.
You may be eligible for Pension Credit if you’ve reached state pension age (this varies depending on your date of birth).
Find out more in our state benefits guide.
When your debt creeps up it can feel overwhelming, but there are a number of places you can turn to for help. You can get free support prioritising your payments, exploring options to consolidate loans and even practical help to get on top of your finances.
Here are some useful resources:
Creating a budget is one of the biggest steps you can take to help reduce your outgoings.
Start by getting a clearer picture of all your incomings and outgoings, plus any additional expenses you might have over the next few months.
This will help you identify any unnecessary spending and highlight opportunities to cancel or renegotiate existing contracts on things like TV, phones and broadband.
Here are some useful resources to help get you started budgeting:
If you have a credit card with a higher interest rate, then you could start by checking for balance transfer offers.
If you're struggling to make repayments on a mortgage, credit card or other loan then talk to the provider to find out what they can do to help until your in a better financial position.
You might be able to extend the terms of your loan, adjust repayment amounts or take a payment holiday.
Unfortunately, the number of online scams grew during the pandemic and the cost of living crisis could fuel that further.
Criminals are using these hard times to take advantage of pension holders by promising to 'unlock' their pension savings before age 55.
But most people who withdraw money from a pension before age 55 will face a 55% tax charge, plus an additional fee to the pension provider arranging it. So doing this will significantly reduce the amount you'll get in your pocket.
The best way to protect yourself from a pension scam is to understand what to look out for.
Find out how to avoid a pension scam
If you're worried about your or a loved one's gambling and the affect it might have on future income or savings, here's where you can get support:
- For help with your gambling: Gam Stop
- Block yourself from accessing online gambling websites: Gam Ban
- Get support with tackling problem gambling and debt: MoneyHelper
- If you're looking to support someone who gambles, try: Be Gamble aware
