Household Support Step 2: Analyzing Spending.

Deep Dive into Step 2: Analyze and Prioritize for a UK Focus

Analyzing Your Spending:

Once you've tracked your spending for a month (as outlined in Step 1, see our website and blog), it's time to analyse the data and identify areas for potential savings. 

UK-Specific Resources:

MoneyHelper: This government-backed website ([https://www.moneyhelper.org.uk/en/everyday-money/budgeting](https://www.moneyhelper.org.uk/en/everyday-money/budgeting)) offers free budgeting tools and guides specifically tailored to the UK context. It includes a budget planner worksheet and an interactive online tool.

The Citizens Advice Bureau: Citizens Advice ([https://www.citizensadvice.org.uk/about-us/contact-us/contact-us/web-chat-service/](https://www.citizensadvice.org.uk/about-us/contact-us/contact-us/web-chat-service/)) provides free, confidential advice on managing your finances. They can help you review your spending and identify areas where you might be able to cut back.

Analyzing Your Data

Here's a breakdown of analyzing your spending for a UK context:

1. Review by Category: Look at each spending category and assess if the amount spent aligns with your expectations. Are there any categories with unexpected high spending?

2. Identify Discretionary vs. Non-Discretionary Spending: Distinguish between essential (non-discretionary) expenses like rent, utilities, and food, and non-essential (discretionary) expenses like entertainment, eating out, or subscriptions.

3. Compare with UK Averages: Use resources like the Office for National Statistics ([https://www.ons.gov.uk/](https://www.ons.gov.uk/)) to compare your spending in each category with UK national averages. This can help you identify areas where you might be spending more than the norm.

Prioritizing Spending in the UK Context

Essential Expenses:

Housing: In the UK, housing costs are often the biggest expense. Explore options like claiming Housing Benefit if eligible. 

Utilities: Consider switching energy providers to potentially obtain better deals. Utilize government schemes like the Winter Fuel Payment for additional support ([https://www.gov.uk/winter-fuel-payment](https://www.gov.uk/winter-fuel-payment)).

Food: Utilise budget-friendly resources like budget meal plans from the National Health Service (NHS) ([https://www.nhs.uk/live-well/eat-well/food-guidelines-and-food-labels/the-eatwell-guide/](https://www.nhs.uk/live-well/eat-well/food-guidelines-and-food-labels/the-eatwell-guide/)) and discount supermarkets like Aldi or Lidl.

Discretionary Expenses:

Subscriptions: Review your subscriptions for streaming services, phone plans, etc. Consider downgrading plans or canceling unused subscriptions.

Entertainment: Explore free or low-cost entertainment options like library activities, parks, or community events. 

Debt: Prioritise paying off high-interest debt like credit cards. Explore options like debt consolidation or contacting a debt management charity like StepChange ([[https://www.stepchange.org/](https://www.stepchange.org/)]) for free advice.

Online Resources and Tools:

Energy Price Comparison Websites: Websites like uSwitch ([[https://www.uswitch.com/](https://www.uswitch.com/)]) and MoneySavingExpert ([[https://www.moneysavingexpert.com/energy/](https://www.moneysavingexpert.com/energy/)]) allow you to compare energy tariffs and potentially find better deals.

Benefits Calculators: Use government benefit calculators ([[https://www.gov.uk/benefits-calculators](https://www.gov.uk/benefits-calculators)]) to check your eligibility for additional support like Universal Credit or Council Tax Reduction.

Remember: Don't be afraid to adjust your priorities as needed. The goal is to create a sustainable budget that allows you to cover essential needs while leaving some room for your family's well-being and enjoyment.