7 budgeting hacks every UK newcomer should know

Don’t get us wrong, moving to a new country is exciting. But it’s also expensive. Deposits, application fees, the healthcare surcharge, council tax… the costs can add up fast.

To help make it all easier we’ve partnered with experts over at the money management app, Emma, to bring you some budgeting hacks for life in the UK. Here are our top seven tips.

1. Track your spending from day one

With so much to pay for early on in your UK journey, it can be very easy to lose track of your spending. Especially when you’re working with all new prices, in a new currency.

To keep on top of all the first-time purchases you need – from rent deposits to new clothes – it’s a good idea to track your spending from the start. Some use spreadsheets… but an easier option is to use a budgeting app (like Emma).

The Emma app automatically tracks all your transactions across your bank accounts and categorises them for you. So you can always see where your money is going and where you might be overspending. More financial control, less stress.

The hack: Track spending with the Emma app.

2. Set budgets based on UK cost of living

A budget that helped you thrive back home, may not work in the UK. Many living costs are much more expensive here than elsewhere in the world, from utility bills to public transport. And if you’re living in a big city, those costs jump again – London’s public transport fares are some of the highest globally! On top of that, there are extra expenses that you may not have expected, like council tax and TV licence.

The hack: don’t just copy and paste your old budget. Instead, research all the average costs for the area you live and tailor your new budget accordingly.

3. Save with comparison websites, discount cards and cashback

Want to avoid paying too much for a purchase? Think like a UK local and head to a comparison website. From energy suppliers, to broadband, to phone contracts, to car insurance – simply enter your details once and let the website do all the hard work finding the best price. It could save you hundreds every year.

Popular sites include:

• Compare The Market
• Go Compare
• USwitch

Another way to save on everyday spending is to tap into brand loyalty schemes. Lots of supermarkets, retailers, coffee shops and fast-food chains have them and it’s usually free to sign up. Once you’re in, you can get rewards and discounts for your regular spending. Popular schemes include:

• Tesco Clubcard (groceries)
• Sainsbury’s Nectar Card (groceries)
• Asda Rewards (groceries)
• Lidl Plus (groceries)
• Boots Advantage Card (health and wellness)
• Costa Card (coffee)
• Greggs Rewards (food)

You may also be eligible for certain UK discount cards. NHS workers and teachers can apply for the Blue Light Card – which gives you access to discounts on lots of big UK brands.

If you fall into a relevant age group, you could also purchase a RailCard. You need to buy this one – but it gives you third off national train journeys. If used regularly it can be a big saver.

Finally, there’s cashback. This is where you can purchase items from a range of UK brands via a cashback site to get a small percentage of the cost refunded.

The hack: compare prices and research discounts before making big purchases or signing up to contracts – and get money off where you can on regular buys.

4. Keep an eye on sneaky subscriptions

Ever signed up for a free trial and forgotten to cancel? We’re all guilty of it. Because lots of subscriptions renew automatically, it’s easy for these forgotten fees to creep up on you. I’m looking at you, Deliveroo Plus.

The hack: Review your subscriptions every month to cut out anything that you don’t need or want. For services that are trickier to cancel (like gym memberships and streaming platforms) set reminders for any notice periods or free trial end dates.

5. Automate your savings (even just a little)

Every penny counts during your first year in the UK and it may be difficult to save much at first. But even having a small amount put aside can be a relief when it comes to emergency repairs, unplanned trips home and other unexpected costs. But how to avoid the temptation to spend?

The hack: Automate a small transfer every month to your savings – even if it’s £5 or less. It takes the pressure off and makes saving less noticeable and easier to stick with. Over time this can add up to a tidy emergency fund with little to no effort. And you can use the Emma app to help!

6. Learn the best times to shop and save

When it comes to shopping in the UK, timing is everything. Seasonal sales happen regularly, often at the same time every year. The biggest events for your UK retail calendar are the dates around Black Friday (28th November) and Boxing Day (26th December). This is when you’ll find the best savings on big ticket items.

The hack: Planning a big purchase? Wait and see if there’s a sale coming up. But always go in with a plan – otherwise you may be tempted to spend more than your budget allows.

7. Build your UK credit score

It’s normal to to have a low credit score when you first move to the UK, even if you had a great score back home. That’s because credit agencies only base your score on a history of using credit products within the UK – so you’re essentially starting from scratch.

Because having a good credit score is essential for accessing reasonable rental agreements, mobile phone plans, credit cards and other financing, you’ll want to start boosting your score as soon as possible. But how?

The hack: Well, it’s not really a hack. Building a good credit score doesn’t happen overnight – it’s steady process of proving you can use credit responsibly. Things you can do include opening a UK bank account and paying bills in your name, and getting a credit card and spending a small amount on it that you can always pay back on time. Find out about more ways to boost a low credit score here.

How can Emma help you budget?

The Emma app is built to be your go-to money companion in the UK. With it you can:

• Track your spending: See all your bank accounts and transactions in one place, so you always know where your money’s going.‍
• Get smart insights: Understand your spending habits and set budgets by category (like groceries, rent, or transport).‍
• Spot and cancel unused subscriptions: Emma flags recurring payments so you can identify any wasteful ones and cancel them.‍
• Automate savings: Use custom savings pots to set goals (like flights home or an emergency fund).‍
• Never miss a bill: Get reminders for upcoming payments, helping you stay on top of due dates and protect your credit score.‍
• Use rent reporting: If you’re a renter, Emma’s rent reporting feature can help you build your credit history without the need to take out any loans or cards.

Fancy giving it a try? Download the app from the App Store or Google Play.

Final hack: Marshmallow customers can enjoy a free 7 day trial of one of Emma’s Annual Plans! After that they’re available for 30% off the normal price. Check out Marshmallow Perks to find out more.

Want to save on car insurance?

Marshmallow car insurance is made for people who have moved to the UK. Unlike lots of other insurers, we look at your full history of driving overseas to give you a fairer price. And we can cover all licences, from any country! That’s how UK newcomers can save an average of £220 on car insurance with us.*

Find out more about Marshmallow car insurance

*Based on internal data for insurance policies sold via Price Comparison Websites in 2024 for UK newcomers living in the UK less than 4 years. The average difference between Marshmallow’s price and the second cheapest price was £220.