Working out a budget
This content applies to England only.
Housing laws vary between England and Scotland. This page applies to England only. Get advice relating to Scotland
Before you decide on a move, you need to work out a budget to make sure you can afford everything you'll have to pay for. Do this by subtracting what you spend your money on (outgoings) from the money you have coming in (income) and hoping there's some left! Don't forget that all the things you may take for granted, such as hot water, food and the TV licence, will be coming out of your own pocket.
Outgoings
First, list all the expenses you think you might have if you move out - these will be your outgoings.
Remember to include:
- rent (look at local adverts to get an idea of local rent levels) or mortgage
- electricity and/or gas bills (these vary depending on the size of your home and the time of year - the more you have your heating on, the higher your bills will be!)
- telephone and internet charges
- council tax (your council will be able to give you an idea of how much this will be. Remember, if you're a student living in a house where all the occupiers are students, you are exempt from council tax)
- home insurance (buildings and contents)
- TV licence and cable
- water rates (again, this depends on how much you use).
Then try and work out how much you spend each month on things like:
- food
- toiletries
- travel
- student fees
- mobile phone
- credit card or loan repayments
- clothes
- cigarettes
- going out
- other expenditure (CDs, books, presents etc).
If you find this hard, try writing down everything you spend this month and see how it adds up. You'll soon be able to see your weak spots!
Income
Next, look at the money you have coming in. This could be:
- wages
- benefits (see below)
- student loans
- contributions from your family (eg if you are studying).
If you take away your outgoings from your income, how much do you have left? If you don't have anything, look at how much you spend in each area and work out where you can cut down.
Benefits, grants and loans
If you are out of work or on a low income, you may be able to claim benefits such as housing benefit, financial support for care leavers and other benefits.
You may also be able to get help to pay your deposit and rent in advance.
Depending on your circumstances there may also be grants and loans that you can apply for to help you set up your new home.
Up front costs
Don't forget that you will probably also need quite a bit of spare cash up front, to:
- pay a deposit and rent in advance if you are renting
- pay for the costs involved if you are buying
- buy furniture and other essentials.
Where can I get help?
The National Debtline website has lots of useful information on budgeting and dealing with debt, including self-help packs you can download. There are also lots of online budgeting calculators that can help you work it all out, such as:
You can get advice on benefits, grants and loans from Citizens Advice or another local advice centre. An adviser can help you work out what you might be entitled to and help you make a claim. They may also be able to sort out any problems you have with your claim - if it is delayed, for example. Use our advice services directory to find an agency near you.
The Site and the National Youth Agency can also help with advice on managing your finances.
