Ditch Debt With Dignity

How to start with a monthly budget.

March blog cover - 2023

The start of a new month and another 30-ish days for us to work on our monthly budgets! At Ditch Debt with Dignity we don’t just support you with your debt and offer debt advice but we also work with you on money management and help with budgeting too. 

Working with a monthly budget is a massive help for any household, especially during the current cost-of-living crisis, but it can be tricky to know where to start. 

Monthly budgets and your bank account.

There are a few different ways to plan your monthly and one of the ways we recommend at Ditch Debt with Dignity is to set up three bank accounts. 

The first bank account (the bills account) has no card and is for your income and direct debits and standing order payments. The second bank account (the weekly budget account) has a card and is for your weekly budget. The third bank account has no card and is an emergency savings pot.

You want to make sure all your income goes into the first account and all fixed / regular monthly outgoings are going out of that account too. It’s worth including a regular amount from this account to your emergency savings pot whilst you’re setting up regular payments too. 

How to work out your weekly budget.

So we want to move money from your income account to your weekly budget account and you can work out this amount by a simple calculation: Income – fixed costs = monthly surplus. Take the monthly surplus amount and multiply it by 12 then divide by 52 to give you your weekly budget. 

Last thing to do is set up a weekly standing order every Thursday from your bills account into your weekly budget account and that’s your available budget for the week. 

It sounds a little fussy, but it isn’t an amount that needs to change often and knowing what that weekly budget amount is will make a massive difference to your living costs and help you find areas for savings, emergency funds or clearing excessive debt. 

Why is your monthly budget important?

Many of us don’t always understand how much we spend on outgoings, but budgeting can help with that and help put you back in control. A budget can give you an accurate view of your bills, mortgage or rent and other expenses such as entertainment subscriptions, fuel and the food shop. 


If you don’t have enough weekly budget, struggling to keep up with monthly outgoings or debt or no extra money available to save please contact us or email info@ditchdebtwithdignity.com and we can offer free and discreet support and advice.

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