Getting Started

Sorting out your money is rarely one big decision. It is a series of small ones, taken in a sensible order: see what is coming in and going out, deal with the debts that can cost you your home or essentials, put a buffer aside for emergencies, then look further ahead to pensions and investing. This guide sets out that order, explains what each step involves, and points to the free help available wherever you live in the UK.

The aim has a name: financial wellbeing. The Money and Pensions Service, the government-backed body behind the free MoneyHelper service, describes it as "about feeling secure and in control", making the most of your money from day to day, dealing with the unexpected, and being on track for a healthy financial future¹. It identifies five key areas that shape it: receiving a meaningful financial education, saving regularly, using credit for everyday essentials, accessing debt advice, and planning for and in later life².

None of this requires paying anyone. MoneyHelper offers free, impartial money and pension guidance backed by government¹, and every step below links to a fuller guide elsewhere on this site.

Financial wellbeing: what it means and where to begin

Financial wellbeing is not the same as being wealthy. The Money and Pensions Service defines it as feeling secure and in control: being able to make the most of your money from day to day, to deal with the unexpected when it happens, and to be on track for a healthy financial future¹. That definition matters because it makes the starting point practical rather than aspirational. You do not need a large income to feel in control; you need to know what is coming in, what is going out, and what would happen if something went wrong.

The same body coordinates the UK Strategy for Financial Wellbeing, a ten-year framework launched in January 2020 that sets goals for 2030 and brings together organisations from a range of sectors². Its five key areas give a useful checklist of where most people's money problems and opportunities sit: financial education, saving regularly, the use of credit for everyday essentials, access to debt advice, and planning for later life².

In practice, that translates into the order this guide follows. First, a budget, because everything else depends on knowing what you have. Second, protection against the unexpected, in the form of an emergency fund. Third, debts, starting with the ones that carry the heaviest consequences. Only then do pensions, investing and longer-term goals come into focus, because money locked away for decades is money you cannot use if the boiler breaks next month.

Where you begin depends on your circumstances. Someone with no debts and a stable income might start with saving or a pension. Someone juggling arrears and credit card bills needs the debt sections first, and the free help listed at the end of this page. The fuller guide to financial wellbeing covers the concept in depth, and the order to sort out your finances sets out the sequence in more detail.

Build a budget you can stick to

A budget is simply a list of all your income and all your outgoings. Working one out matters because it shows how much money is coming into your household, how much is going out, how much you have left, the best way to deal with your debts, what affordable offers you could make to creditors, and how to plan your future spending⁷. Without that picture, every other money decision is guesswork.

The practical steps are straightforward:

1. List every source of income, including benefits, and note whether each is weekly, monthly or irregular.
2. List every outgoing: rent or mortgage, bills, food, transport, debt payments, and the irregular costs such as car repairs that do not arrive monthly.
3. Subtract the outgoings from the income to see what is left, or how much of a gap there is.
4. Keep a copy of your budget so you can keep track of how you spend your money⁷.

Irregular costs are where most budgets fail. When money is tight, it is very hard to stick to repaying debts when an important bill needs paying or the car or house needs an urgent repair. Spreading out those payments by regularly putting a bit of money aside makes budgeting much less stressful⁷. The guide to budgeting for annual and irregular bills covers this in detail.

Knowing your take-home pay is part of this. In a 2026 survey for the Money and Pensions Service, three in four UK adults did not know their take-home pay when accepting a job⁸, which makes realistic budgeting hard before you have even started. If your pay varies, the guide to budgeting when your income varies each month helps, and reading your payslip explains gross pay, net pay and deductions. Free tools can do the arithmetic for you: MoneyHelper provides a free budget planner⁹, and free budget planners, spending trackers and apps are compared in their own guide. The main budgeting guide goes deeper, and weekly or monthly budget helps you pick a rhythm.

Splitting your income: needs, wants, savings and debts

Once you know what you have, the question is where it should go. A popular starting point is the 50/30/20 rule: roughly half of your take-home income for needs, thirty per cent for wants, and twenty per cent for savings and debt repayment beyond the minimums. It is a rule of thumb rather than a rule of law, and the full guide to the 50/30/20 rule explains how to apply it, while budgeting methods compared sets it beside alternatives such as zero-based budgeting and the envelope system.

The value of any split is that it forces a deliberate decision about saving. Guidance on saving suggests habits that make it stick: set up a regular payment into your savings, choose a point in the month when you usually have money available, put aside a bit of any extra money you receive, and increase or reduce what you save as your circumstances change¹⁰. Treating saving as an outgoing, rather than whatever is left at the end of the month, is what turns an intention into a habit.

If debts are part of the picture, the split needs adjusting. Where there is some money left after essential spending, guidance for people repaying multiple creditors suggests dividing it between non-priority creditors so that each is offered a fair share, worked out on a pro-rata basis, which is how the court would do it⁷. That principle, sharing what is available fairly rather than paying whoever shouts loudest, sits at the heart of most informal debt repayment plans.

The split also changes with circumstance. A very low income may leave nothing for wants, in which case the guides to saving money on a low income and cutting household bills are more useful than any percentage rule. Someone with surplus income each month has a different question, covered in what to do with money left over each month. And if the numbers show you are spending more than you earn, how to stop spending more than you earn addresses that directly.

Save an emergency fund of three to six months' essentials

An emergency fund is money set aside to deal with the unexpected: the car repair, the boiler, a drop in income. Government-backed guidance suggests a target of three to six months of essential outgoings³. That range exists because essential outgoings differ enormously between households, and because some jobs and industries carry more risk of income interruption than others. The emergency funds guide works through how much to keep in more detail.

The reason this comes before most other saving and investing is simple: money you cannot reach quickly is money that cannot help in an emergency. Pensions and most investments are locked away or costly to access, so a readily available buffer protects both your household and your longer-term plans. Guidance on saving suggests the habits that build one: a regular payment into savings, timed for when money is usually available, topped up from any extra money received, and adjusted as circumstances change¹⁰.

Where the fund should sit matters too. A separate, easy-access account keeps it apart from spending money, which is the question should emergency savings sit in a separate account? answers. The main savings accounts guide explains the account types available, and ISAs cover the tax-free wrapper that can hold them.

Starting is usually the hardest part. Guidance from the Money and Pensions Service on boosting savings sets out simple ways to begin, alongside its free, impartial guidance on savings and other money topics¹¹. Even a small regular amount builds the habit, and the guide to how to start saving each month is written for exactly that point. If you are simultaneously repaying debts, the question of which comes first has its own comparison page: emergency fund or paying off debt first.

Priority debts come before saving or other debts

Not all debts are equal. Priority debts are the ones with serious consequences if unpaid: a mortgage is a priority debt, and it should be paid first, because the lender could repossess your home and sell it to get their money⁴. Rent, energy bills, council tax and court fines sit in the same category, because each can end in eviction, disconnection, bailiffs or, in the worst cases, imprisonment.

Guidance on dealing with debts is explicit about the order: deal with any priority debts before deciding what to do about your other debts, and only then decide on the best way to handle the non-priority debts⁷. Non-priority debts, such as most credit cards, personal loans and overdrafts, still matter, and unpaid debts are ultimately paid in a set order from an estate even after someone dies, before anything is given to people named in the will or until the money runs out¹². But while you are alive and repaying, the consequences of missing them are less immediate, which is why they come second.

For non-priority debts, there are structured options. A debt management plan is an informal arrangement with your creditors, and if you finish the plan, your unsecured debts will be cleared¹³. In Scotland, some formal debt solutions require advice first: you need to get advice from an approved money adviser before you can apply¹⁴. The debt section of this site covers all the solutions, their costs and their consequences, and the comparison of emergency fund or paying off debt first addresses the common fork in the road.

If you cannot keep up with mortgage or rent payments, help exists and the earlier it is sought the better. Scottish cost of living guidance signposts support with rent and mortgage difficulties for people under pension age¹⁵, and nidirect guidance for Northern Ireland sets out what to do about mortgage arrears or payment difficulties⁴. Similar help in Wales is covered on money help in Wales.

Borrowing: credit cards, overdrafts, buy now pay later and payday loans

Borrowing is a normal part of household finance, but the cost varies enormously by type. Bank of England guidance notes that certain types of borrowing, such as overdrafts, revolving credit on your credit card and payday loans, charge higher interest⁵. That single fact should shape most borrowing decisions: the form of credit matters as much as the amount.

An overdraft is a type of loan that often has interest, borrowed through your current account¹⁶. Since the rules changed in April 2020, some people found themselves worse off; if that applies to you, you can contact your bank, which might reduce or waive interest, offer a continuation of overdraft borrowing at the current rate of interest, or agree a repayment programme, possibly including a personal loan¹⁶. The current accounts guide explains overdrafts as a product feature, and APR and AER explains how to compare the cost of borrowing.

Payday loans sit at the expensive end. Lenders must check your credit worthiness before they give you a loan, roll over a loan or increase the amount of credit¹⁷, but the high interest noted by the Bank of England⁵ means these loans are generally a last resort. nidirect guidance covers payday loans and your rights in full¹⁷.

Consolidating debts, combining several debts into one loan, is sometimes presented as a simple fix. It is one option among several: the alternatives include making new arrangements with your existing lenders, making best use of existing credit options such as an overdraft, credit or store cards, a personal loan or mortgage extension, or borrowing from relatives¹⁸. Consolidation can reduce the monthly payment while increasing the total cost, so the loans and debt guides set out the trade-offs. Borrowing from family has its own risks, covered in borrowing from or lending to family and friends.

Seasonal borrowing deserves a mention. The Money and Pensions Service warns that borrowing to cover Christmas can store up problems for the new year, and sets out five ways to save before the festive period instead¹⁹. The narrow guide to borrowing to pay for Christmas covers the risks. For everyday borrowing choices, credit cards and credit scores explain how lending decisions are made about you.

Pensions: planning ahead for later life

A pension is money set aside during working life to live on later, usually with tax relief and, in workplace schemes, employer contributions on top. Planning ahead matters because of a change on the horizon: money in a pension cannot normally be accessed until age 55, and that minimum access age rises to 57 from 6 April 2028. Anyone planning around the old age needs to know the rules are moving.

What you can do with a defined contribution pension pot has been flexible for some years. From the age of 55, people can choose what to do with their pot, under the pension flexibilities²⁰, though that age rises with the 2028 change. The pensions section explains the types of pension, how workplace schemes work and what happens at retirement.

Free guidance is available before you make retirement decisions. MoneyHelper provides retirement guidance, reachable by phone, webchat and WhatsApp, with webchat hours of Monday to Friday, 9am to 5pm, and UK calls free, though they may be recorded to improve the service²¹. If English or Welsh is not your first language, an interpreter can be found to help²¹. The difference between this free guidance and regulated financial advice, which recommends specific products, is explained in financial advice or guidance and paying for a financial adviser.

If something goes wrong with a workplace pension, there is a set process. Complaints go first through the scheme's own internal dispute resolution procedure, and only after that process has been exhausted can the member go to MoneyHelper or the Pensions Ombudsman to try to resolve the complaint²². MoneyHelper does not have statutory powers and can only affect a resolution through persuasion and conciliation²², so the ombudsman is the route for binding decisions.

Starting early is the advantage that matters most, and how much to pay into a pension when starting out works through that question. nidirect signposts where to get information and help with pensions in Northern Ireland²³.

Managing money through life events: weddings, separation and divorce

Big life events reshape money, sometimes all at once. Weddings, having children, separation and divorce each bring costs, new household arrangements and decisions that are hard to reverse. The life events section covers the full range, and managing money as a couple addresses the day-to-day question of joint or separate finances.

The cost of family life is a live issue. Almost half, 49%, of parents of children age 5 or under in the UK considered delaying having a baby due to the financial cost, according to Money and Pensions Service research published in 2026²⁴. Budgeting ahead for a change in household size, and for the drop in income that parental leave can bring, is one of the clearest cases for a written plan, and setting financial goals covers how to make one.

Divorce has a pensions dimension that many people miss. Only four in ten adults, 43%, know that a pension forms part of a divorce settlement, according to a survey of 2,231 people who are married, in a civil partnership or had been divorced, conducted between 3 and 8 December 2025²⁵. Awareness was evenly split between men and women, at 44% and 41% respectively, and higher among 55 to 64-year-olds and people aged 65 and over, at 57% and 59%²⁵. A pension is often the largest asset after the family home, so overlooking it in a settlement can be a costly mistake.

Free help exists for exactly this situation. The Money and Pensions Service offers a pensions and divorce appointment service that guides you on your next steps, including where to find additional help and how to access regulated financial advice if needed²⁵. Its helpline for that service is 0800 011 3797²⁵. Separation can also mean pressure over money from a former partner, and free help if someone pressures you over money sets out where to turn.

Scams: the warning signs and what to do if you're targeted

Scams work by creating urgency and exploiting trust. The Financial Services Compensation Scheme lists common warning signs: inaccurate spelling and wording, a sense of urgency to act quickly, being asked for bank details or passwords and told not to tell anyone, and an unfamiliar email address²⁶. Any one of these should prompt a pause before money moves.

Guidance on suspicious calls notes that 159 is a number that can be used to check whether a call claiming to be from a bank is genuine²⁷. The Payment Systems Regulator states that if someone claiming to be from your bank, the PSR or another financial regulator like the FCA contacts you out of the blue, the organisation can be contacted directly using publicly listed contact details, and that no one should be pressured into sending money²⁸. The Insolvency Service likewise states it will not randomly contact you to request money²⁹. MoneyHelper states it will never contact anyone out of the blue or charge for its services, and its Financial Crimes and Scams Unit can be reached on 0800 015 4402³⁰.

If you have been scammed, the Financial Ombudsman Service sets out the immediate steps: contact your bank or payment services provider immediately, contact the police on 101, report the scam to Report Fraud, and keep records of all contact and correspondence between you and the scammer³¹. Acting quickly matters because banks can sometimes recall payments and freeze accounts. The scams and fraud section covers the types of scam in depth, and MoneyHelper maintains its own scams information, including warnings about romance scams issued to Welsh consumers³².

Shame should not delay action. One in three UK adults, 31%, would be uncomfortable telling their friends they had been scammed, and less than half, 46%, would be comfortable telling their families if they had lost money to a scam³³. Scammers rely on that silence. Reporting protects not only your own position but also the next potential victim, and the ombudsman can consider complaints about scams involving unauthorised payments and identity theft³¹.

Talking about money and your mental health

Money worries and mental health feed each other. Worry about bills disturbs sleep and concentration; poor mental health makes it harder to open statements, make calls and keep to plans. The Financial Services Compensation Scheme signposts mental health support resources for people struggling with money worries, including MoneyHelper, Mind and the Mental Health and Money Advice service³⁴. Those services are free, and none of them requires a crisis before you make contact.

Talking is part of the treatment. The Money and Pensions Service runs Talk Money Week, encouraging everyone to use it as a time to take one action towards feeling more informed, confident and in control of your money³⁵. The evidence for the need is in its own research: one in three UK adults would be uncomfortable telling their friends they had been scammed³³, and discomfort about admitting money problems extends well beyond fraud.

For practical conversations, the guides on managing money as a couple, teaching children about money and money at 18 cover the situations where talking about money is hardest and most valuable. If debt is the source of the worry, the free debt advice routes in the debt section are confidential, and the earlier they are used, the more options usually remain open.

MoneyHelper: free, impartial guidance backed by government

MoneyHelper is the government-backed consumer service for money and pensions. It offers free, impartial money and pension guidance, backed by government¹, and it is there for people who are worried about money and finding it difficult to know where to start². Its support and guidance are free², and it will never contact you out of the blue or charge anyone for its services³⁰.

The service has a history worth knowing if you remember older names. The Money and Pensions Service replaced the three existing providers of government-sponsored financial guidance: the Money Advice Service, The Pensions Advisory Service and Pension Wise²³. MoneyHelper was launched in June 2021 as the consumer-facing service bringing that support together²⁴. The story of the Money Advice Service name is covered at the Money Advice Service: what happened to it.

MoneyHelper can be reached in several ways. Its helpline is 0800 138 7777². UK calls are free and may be recorded to improve the service²¹. There is a WhatsApp number, +44 (0)7701 342744, with replies between Monday and Friday, 9am to 5pm, except bank holidays²¹, and webchat on the same weekday hours²¹. If English or Welsh is not your first language, MoneyHelper can find an interpreter to help²¹. For scams specifically, its Financial Crimes and Scams Unit can be called on 0800 015 4402³⁰.

Its tools include a free budget planner⁹, and its tools are described as free, impartial and easy to use⁹. Guidance is not advice: MoneyHelper explains options, while a regulated financial adviser recommends specific products for your circumstances. That distinction, and when paying for advice is worth it, is covered in financial advice or guidance.

Who provides free help in the UK

Free, impartial help comes from several kinds of organisation, and knowing who is who protects you from the firms that charge for what others provide free.

The Money and Pensions Service is an arm's-length body of the government, sponsored by the Department for Work and Pensions and funded by levies on both the financial services industry and pension schemes²⁴. It provides free and impartial debt advice, money guidance and pension guidance to members of the public²³, through the MoneyHelper service described above.

Beyond it, Business Debtline provides independent guidance on household and business budgets⁷, and nidirect, the Scottish Government's cost of living campaign and the Welsh Government all publish official money guidance for their nations⁴. The Financial Ombudsman Service handles complaints about financial firms, including scams and cost of living disputes, at no charge to the consumer³¹. The Financial Services Compensation Scheme protects customers of authorised financial firms up to £85,000 if the firm fails³⁶, which is the backdrop to the consumer protection rules.

A warning applies to all of them: no legitimate government-backed body will contact you out of the blue. The Money and Pensions Service has never, and will never, turn up to your home or contact you out of the blue via phone, WhatsApp, email or text³⁰. The Payment Systems Regulator and the Insolvency Service give the same assurances about themselves²⁸. Anyone offering to fix your debts for an upfront fee, or cold-calling about your pension, should be treated with suspicion, and the scams and fraud guide explains why.

Help in Scotland, Wales and Northern Ireland

Money rules are largely UK-wide, but guidance, benefits and some debt solutions differ by nation, and each has its own official sources of help.

In Scotland, the cost of living campaign site covers debt and money, including the requirement to get advice from an approved money adviser before applying for certain debt solutions¹⁴, and signposts help with rent and mortgage costs for people under pension age¹⁵. The money help in Scotland page gathers the Scottish guidance and payments in one place.

In Wales, MoneyHelper offers a bilingual service via a variety of channels, with tools and helplines in English and Welsh¹. Its guides are available in English and Welsh, and in print, braille or audio format, for free², and its scams information is available in Welsh³². For services in Welsh, visit www.helpwrarian.org.uk or call 0800 756 1012³². The money help in Wales page has the details.

In Northern Ireland, nidirect publishes official guidance across the money topics in this guide: mortgage arrears and payment difficulties⁴, payday loans¹⁷, consolidating debts¹⁸, debt management plans¹³, debt when someone dies¹² and getting information and help with pensions²³. The money help in Northern Ireland page collects these, and the nations section explains where the rules themselves differ.

Wherever you live, the starting sequence in this guide is the same: budget, priority debts, emergency fund, then the longer term. The pages linked throughout carry each step in the depth it needs, and MoneyHelper is at the end of a phone, free, if a person is what you need rather than a page.