The paper version. Fill it in with a pen, or use the spreadsheet if you would rather the totals worked themselves out.
Use the figure that actually lands in your bank account. Your gross salary is the wrong number, because these come out before you ever see it:
Your payslip calls it net pay or take-home. If your pay changes month to month, fill in section 4 first.
The step most budgets skip. A budget that lists only monthly bills works for about three months, and then the car insurance renewal, the MOT or Christmas arrives and it falls over. Nothing was wrong with it except that it never made room for them.
Section 3 divides those costs into a monthly amount. Carry that one total into “Set aside for annual and one-off costs” in section 2 — and do not list the same items twice.
| Source | Planned £ | Actual £ |
|---|---|---|
| Take-home pay — youAfter tax, NI, pension and student loan | ||
| Take-home pay — partner | ||
| Variable or self-employed incomeFrom section 4 | ||
| Benefits — Universal Credit, Child Benefit, PIP | ||
| Maintenance received | ||
| Rent or lodger income, after costs | ||
| Other income | ||
| Total money in (A) |
| Category | Planned £ | Actual £ |
|---|---|---|
| Home — where you live | ||
| Rent | ||
| Mortgage payment | ||
| Council taxGOV.UK’s “Paying your bill” guide says the cost is usually split into 10 monthly payments | ||
| Ground rentLeasehold only | ||
| Service chargeLeasehold or a managed estate | ||
| Water rates | ||
| Gas and electricity | ||
| TV licenceIf annual, put it in section 3 instead | ||
| Broadband and landline | ||
| Mobile phones | ||
| Buildings and contents insuranceMonthly instalments only — annual goes in section 3 | ||
| Life insurance or income protection | ||
| Home repairs and upkeep | ||
| Home subtotal | ||
| Getting around | ||
| Car finance, lease or PCP | ||
| Car insuranceMonthly instalments only | ||
| Fuel or EV charging | ||
| Vehicle tax (VED)If you pay monthly by Direct Debit | ||
| Breakdown cover | ||
| Servicing, MOT and repairsIf you save up for these, use section 3 | ||
| Parking, tolls and congestion charge | ||
| Public transport or season ticket | ||
| Getting around subtotal | ||
| Day to day | ||
| Food shopping | ||
| Household, toiletries and cleaning | ||
| Eating out, takeaways and coffee | ||
| Clothing and shoes | ||
| Childcare or nursery feesWhat you actually pay, after funded hours or any Tax-Free Childcare top-up | ||
| School costs — dinners, trips, clubs | ||
| Pets — food, insurance, vet | ||
| Health — dentist, optician, prescriptions | ||
| Haircuts and personal care | ||
| Day to day subtotal | ||
| Life and leisure | ||
| Gym, sport and hobbies | ||
| Streaming, music and apps | ||
| Days out, cinema and events | ||
| Nights out | ||
| Gifts and celebrationsChristmas and birthdays sit better in section 3 | ||
| HolidaysSection 3 if you save up for them | ||
| Charity and giving | ||
| Union or professional fees | ||
| Life and leisure subtotal | ||
| Borrowing — what you pay to clear debt | ||
| Credit card payments | ||
| Personal loan | ||
| Overdraft interest and fees | ||
| Buy Now Pay Later instalments | ||
| Catalogue or store card | ||
| Other debt repaymentNot your student loan — that comes out of your pay, not your bank | ||
| Borrowing subtotal | ||
| Saving and the future | ||
| Emergency fund | ||
| Savings account or Cash ISA | ||
| Stocks and Shares ISA or investments | ||
| Extra pension paid from your bankNot the workplace pension already taken from your pay | ||
| Children’s savings or Junior ISA | ||
| Mortgage overpayments | ||
| Saving subtotal | ||
| Annual and one-off costs | ||
| Set aside for annual and one-off costsThe monthly total from section 3 — do not list those items again above | ||
| Total money out (B) | ||
Write in what the thing costs and how often it comes round in months — 12 for once a year, 6 for twice a year, 24 for every two years. Divide to get the monthly amount. If you pay something by monthly instalment instead, leave it out here and put it in section 2.
| Cost | Amount £ | Every (months) | Monthly £ |
|---|---|---|---|
| Car insurance | |||
| MOT | |||
| Car service | |||
| Vehicle tax (VED) | |||
| Tyres | |||
| Buildings and contents insurance | |||
| Boiler service or cover | |||
| TV licence | |||
| Christmas | |||
| Birthdays and gifts | |||
| Holiday | |||
| School uniform | |||
| Dentist check-ups | |||
| Optician and glasses | |||
| Pet insurance, jabs or boosters | |||
| Professional membership or union fees | |||
| Breakdown cover | |||
| Self Assessment tax bill | |||
| Replacing a phone or laptop | |||
| Replacing a household appliance | |||
| Total to set aside each month — carry to section 2 | |||
If your income changes month to month, one salary figure will mislead you. Write down what actually landed in each of the last 12 months — not what you invoiced, and not a good month you remember. Self-employed: use what you were paid before setting anything aside for tax, then put your Self Assessment bill in section 3.
| Month | Received £ | Month | Received £ |
|---|---|---|---|
| Average month | Lowest month |
Your average month is not your worst month. Budget against the average and some months will fall short; budget against the lowest and most months will leave something over. Decide which, then carry that figure into section 1.
| Total money in (A) | |
| Total money out (B) | |
| Surplus or shortfall (A − B) |
If that last number is negative. A shortfall is information, not a verdict. But if you are covering the gap with credit, free and confidential debt advice exists and is worth using before anything you pay for.
National Debtline — nationaldebtline.org — run by the Money Advice Trust, registered charity 1099506. In its own words: “Unlike some services, we never charge for our support. Every call, webchat, and online tool is free to use.”
StepChange Debt Charity — stepchange.org — in its own words: “We are non-profit and our advice is free.” Registered charity 1016630 and SC046263.
Both descriptions were taken from those organisations’ own websites, read on 6 August 2026.
The 50/30/20 rule splits take-home pay into roughly 50% needs, 30% wants and 20% savings and debt repayment. It was popularised by Elizabeth Warren and Amelia Warren Tyagi in their 2005 book All Your Worth: The Ultimate Lifetime Money Plan. It is a rule of thumb, not a standard: no UK regulator, lender or government body requires or endorses those proportions, and the book was written for US households. Plenty of people in the UK cannot get needs anywhere near 50% however carefully they budget, because of what housing costs where they live.
Source for the council tax note in section 2: GOV.UK, How Council Tax works: Paying your bill (gov.uk/council-tax/paying-your-bill), read on 6 August 2026 — “The cost is usually split into 10 monthly payments.”
MoneyStraight, part of iVest Group. Education only. This template ships with no pre-filled amounts, no estimate of what anything costs, and no recommendation about what you should spend, buy or switch to. MoneyStraight is not authorised by the Financial Conduct Authority and nothing here is financial advice or a financial promotion of any product. You can check whether a firm or adviser is authorised on the FCA Register at register.fca.org.uk.
Version 1.0 — 6 August 2026.