Many of us are asking the same question right now. Rent is high, bills keep going up, and it can feel like your money is gone as soon as you get paid.
If you are finding it hard to save, always stressing about money or just tired of the constant costs, this is for you. Let's talk about how to spot when your bills are taking over and what you can do to take back control.
So, are you spending too much on bills? A good rule of thumb is that your regular outgoings, such as rent, utilities, phone, council tax, car finance and food, should not take up more than 50% of your income. But in reality, that number is much higher for many people, especially in big cities like London.
When bills start creeping past that halfway mark, it gets harder to save money, pay off debt or make progress towards your financial goals. You might find yourself spending money on non-essentials to feel better in the moment, only to worry about it later.
This kind of spending can become a habit. It can even turn into compulsive spending when you are trying to escape stress. And the more you buy things online or in shops without thinking, the further away you drift from that feeling of security.
If you feel like you are just working to pay bills, you are not alone. Here are some practical ways to cut back on spending:
Small changes add up. And even just being aware of what is going out each month gives you more control.
Constantly feeling like you cannot afford things can take a toll. Financial worries can impact your mental health, sleep, energy levels and relationships. You may feel isolated, especially if your friends appear to be doing well.
But talking about it helps. Explore what is behind your spending. Do you buy things when you are tired, stressed or bored? Do you treat yourself every payday and then worry for the rest of the month?
Try the 24-hour rule: if you are tempted to buy something, wait. Take a moment to think – do I really need this or is it just a way to feel good right now? And remember, your worth is not measured by what you can buy. It is about what makes you feel grounded, secure and in charge of your life.
Spending is not bad. Neither are bills. However, when they start taking over, it is time to review your budget, note the details and make adjustments. Keep a close eye on your bank accounts, set limits and utilise the various tools available to help you manage your finances effectively.
What to Do If You Are Behind on Bills
Should You Save Or Pay Off Debt First?
Can I use a credit line to pay my energy bills?
Check out our other great content in our Info Hub, with articles about the different types of credit products, money management tips and help with saving money!