How to Get Your Spending Under Control and Save Money
Published 29th of November 2012·Updated 6 April 2026
Reviewed by: Reviewed for accuracy April 2026
Getting your spending under control starts with knowing exactly where your money goes. Most people who overspend are not reckless; they simply lack a clear picture of their outgoings. Once you track your spending for 30 days, patterns emerge that make it far easier to find savings without feeling deprived.
Short Summary
The Money Advice Service recommends writing down every purchase, however small, for at least one month before attempting to cut back. Without accurate data, you are guessing.
Small reductions compound quickly. If you earn £1,500 per month and spend £1,400, cutting spending by 10 per cent frees up an extra £140 per month, doubling your savings rate from £100 to £240.
Building a simple system matters more than willpower. Automating savings, using cash for problem spending categories, and reviewing your budget once a month will get you further than trying harder.
If debt is part of your overspending problem, free help is available from StepChange (0800 138 1111) and Citizens Advice.
How do I find out where my money is going?
Log in to your online banking and download your last three months of statements. Go through every transaction and assign it to a category: housing, food, transport, eating out, subscriptions, clothing, and so on. Most banks including Barclays, NatWest, HSBC and Monzo now categorise spending automatically, which makes this faster.
Once you have three months of data, calculate a monthly average for each category. This tells you what you actually spend, not what you think you spend. Most people are surprised: research by the Money Advice Service consistently finds that people underestimate discretionary spending by 20 to 30 per cent.
Pay particular attention to subscriptions. Streaming services, gym memberships, app subscriptions and delivery passes are easy to forget about. A typical UK household with multiple streaming services, a gym membership and a food delivery subscription spends over £100 per month on services they may use irregularly.
How do I identify my biggest spending weaknesses?
Look at your three categories with the highest discretionary spend. Discretionary means anything that is not a fixed essential such as rent, council tax or utilities. Common culprits are eating out, takeaways, online shopping, alcohol and impulse purchases.
Rank those categories by total spend and ask yourself: which of these would hurt least to reduce? Start with the lowest emotional cost first. Cutting your takeaway spend from £150 to £60 per month is often painless once you have a habit of meal planning. Attempting to give up everything at once rarely works.
A useful rule from behavioural finance research: introduce a 48-hour waiting rule for any non-essential purchase over £30. If you still want it after 48 hours, buy it. Most impulse purchases do not survive the wait.
How do I set a spending budget I will actually stick to?
Divide your take-home pay into three broad categories using the 50/30/20 framework:
| Category | Allocation | What it covers |
|---|---|---|
| Needs | 50% | Rent/mortgage, utilities, food, transport |
| Wants | 30% | Eating out, hobbies, subscriptions, clothing |
| Savings/debt | 20% | Emergency fund, savings goals, debt repayment |
Adjust the percentages to fit your situation. If you have significant debt, redirect some of the "wants" allocation to debt repayment until the debt is cleared. If your rent is high relative to your income, the needs category may need to be 60 per cent.
Pay yourself first: on payday, transfer your savings target to a separate account before you spend anything. This one habit, recommended by Citizens Advice, is the single most reliable way to build savings consistently.
What practical changes make the biggest difference?
The highest-impact changes are usually in food, energy and subscriptions, because these are costs you incur every month. Switching from branded to own-brand food at Aldi, Lidl or a supermarket own-brand range saves the average family £500 to £1,500 per year, according to Which? research.
Meal planning for the week before your food shop eliminates the two biggest sources of food waste: buying items you already have and buying fresh produce that goes unused. Set a fixed weekly shopping budget and pay by card so you have a clear record.
Review all subscriptions annually. Cancel any you have not used in the past two months. Services such as Amazon Prime, Disney+, Apple TV+ and Sky all offer free cancellation. You can always resubscribe later.
How do I stay on track once I have started?
Review your spending weekly, not monthly. A weekly review takes five minutes and catches problems before they compound. Monthly reviews are too infrequent: by the time you notice you have overspent on eating out, the damage is done.
Use a separate current account or a dedicated pot (Monzo and Starling both offer savings pots within their apps) for specific goals such as a holiday or a new appliance. Giving a savings goal a name and a target amount significantly increases the likelihood of reaching it, according to research published by the Behavioural Insights Team.
If you slip up and overspend one week, do not abandon the budget. Adjust the following week to compensate and move on. Budgeting is not about perfection; it is about the overall trend.
FAQ
How much should I save each month?
The Money Advice Service recommends saving at least three months of essential outgoings as an emergency fund before focusing on longer-term goals. Beyond that, save as much as your budget allows after covering essentials. Even £50 per month adds up to £600 per year and builds the habit of saving.
What is the fastest way to reduce my spending?
The fastest short-term reductions come from cancelling unused subscriptions, switching to own-brand food, and reducing takeaways and eating out. These three changes alone can free up £200 to £400 per month for many households without requiring significant lifestyle changes.
Should I use cash or card to control spending?
Cash works better for categories where you tend to overspend impulsively, such as eating out or shopping trips. When cash runs out, spending stops. Cards are fine for fixed costs and planned purchases where you already know the amount. A hybrid approach works well: use cash envelopes for problem categories and cards for everything else.
Does budgeting mean I can never treat myself?
No. A budget that allows no treats is a budget you will not stick to. Build a "fun money" allowance into your budget each month. Knowing you have £50 set aside for treats guilt-free is more sustainable than trying to spend nothing on enjoyment.
What if my income varies month to month?
Base your budget on your lowest expected monthly income. When you earn more than that, allocate the surplus deliberately: split it between savings, debt repayment and a small reward for yourself. This approach, sometimes called a "floor budget", prevents overspending in good months and protects you in lean ones.
Where can I get free help with budgeting?
The Money Advice Service offers a free online budget planner at moneyhelper.org.uk. Citizens Advice can help you create a budget in person or over the phone. If your spending problems are linked to debt, StepChange provides free debt advice and can help you set up a debt management plan.