Step 1: Know where your money’s going
If you want to make your money work harder, you’ve got to know where it’s going. Sounds basic, but most of us underestimate how much we actually spend, until we track it.
Start by listing all your income sources – your main job, side gigs, anything irregular but still coming in. Every little bit counts.
Then look at your spending. A good way to break it down:
- Fixed expenses: rent, mortgage, car payments, insurance
- Variable expenses: groceries, takeaway, clothes, travel
Or try the “needs vs wants” method:
- Needs = stuff you genuinely can’t live without (like food, rent, transport)
- Wants = nice-to-haves (like streaming services, new clothes, takeaways)
Track your spending for a month, then take a look at the bigger picture:
- Are little purchases adding up fast?
- Overspending on groceries without realising?
- Still paying for a subscription you never use?
Spotting these patterns is the first step to spending smarter.
Step 2: Build a budget that works for you
When you’re on a lower income, the key is to prioritise essentials – things that keep your life running smoothly:
- Housing
- Food
- Utilities
- Transport
- Healthcare
Once those are covered, see what’s left. If the numbers don’t stretch far, it might mean cutting back on non-essentials – just for now.
A few quick savings ideas:
- Could you switch supermarkets for cheaper options?
- Use public transport instead of driving?
- Apply for discounts or benefits you might be eligible for?
And remember: your budget isn’t set in stone. Things change, so check in regularly and tweak it when you need to. Flexibility is your friend.
Step 3: Everyday ways to cut costs
Here are some real-world tips to help you save without sacrificing everything you enjoy.
Housing:
- Consider downsizing or moving somewhere with lower rent
- Team up with a housemate to split costs
- Look into local council or housing support
- If you own, check if refinancing your mortgage could reduce monthly payments
- Got a spare room? Renting it out could bring in extra cash
Food:
- Meal plan to avoid last-minute takeaways
- Cook at home – it’s usually cheaper and healthier
- Bulk-buy staples when there’s a deal
- Use loyalty cards, vouchers and discount apps
Transport:
- Take public transport where you can
- Walk or cycle for short trips
- Carpool with mates to save on petrol and wear-and-tear
Utilities:
- Turn off lights and unplug things when not in use
- Switch to energy-efficient bulbs
- Compare providers – you might be overpaying
- Use a smart thermostat to manage heating costs better
Entertainment:
- Free fun is everywhere – local events, community sports, park hangouts
- Pause or cancel subscriptions you’re not really using
- Tap into community centres or libraries for low-cost activities
How Zilch can lend a hand
When an unexpected cost crops up (like your car suddenly needing a fix), spreading the payment over time can really help. That’s where Zilch comes in. The Pay over 6 weeks and Pay over 3 months payment options let you split the cost into smaller, more manageable chunks.
It’s not about spending more – it’s about giving yourself a little breathing room when you need it most.
When you need extra support
If you’re really struggling to cover essentials like food, bills or rent, know that you don’t have to face it alone. There’s help out there – and asking for support is a strong, responsible step.
Here are a few places to start:
- Food banks. If you’re short on groceries, your local food bank may be able to help. Visit The Trussell Trust to find one near you.
- Debt advice charities. Organisations like StepChange, National Debtline and Citizens Advice offer free, confidential help if you’re worried about debt or you’re behind on payments.
- Local councils. Some councils have hardship funds or emergency support schemes for those in urgent need.
If money stress is affecting your mental health, services like Mind or Samaritans are also here to listen and support you.
Help is available – and it’s always OK to ask for it.