Start with monthly take-home income, then list fixed essential costs such as rent or mortgage, Council Tax, utilities, insurance and debt repayments. Add variable essentials including groceries, transport, childcare and household items, followed by non-essential spending such as eating out, subscriptions and hobbies. Include irregular costs, such as car repairs, birthdays and annual policies, by estimating the yearly total and dividing it by 12. The amount left can be divided between emergency savings, other goals and flexible spending; review your figures against bank statements regularly and adjust them when costs change.