For many of us, financial management is not something we typically love. In fact, it’s often quite the opposite with money, and more specifically financial difficulties, being a leading source of stress and anxiety for UK adults, according to the Money and Mental Health Policy Institute. However, taking control of your finances is vital to avoiding problem debt and the worry that comes with it.
Here, we run through a few simple yet effective financial management tips to help you fall back in love with your finances.
Set financial goals
This is something that we mentioned in our previous blog, ‘New Year, New Finances’. Setting clear financial goals is one of the most important steps to falling back in love with your finances. Without a clear goal, you can easily become demotivated with your finances and slip back into old, potentially harmful financial habits, for example using Buy Now, Pay Later or relying on your credit card.
Whilst your overall objective may be to become financially stable or pay off certain debts, these larger goals can often feel unattainable at the beginning. Therefore, it’s crucial to break these down into smaller, more achievable steps so you can see progress and feel yourself gradually working towards the bigger picture. Reviewing these goals and your progress each month or even week can help you stay motivated. Likewise, sharing your goals with a partner or loved one can help you to stay on track.
Create a spending plan
The thought of creating and sticking to a budget may fill most of us with dread, not love. However, an effective, well-structured spending plan can allow you to work towards your financial goals.
Whether you are creating a budget or spending plan, your first step should always be calculating your income to see what you can and can’t afford each month. From here, it’s important to prioritise your priority bills, any debt repayments or other essential outgoings, such as food or transportation. After this, you can look at your disposable income (DI) and evaluate what you can save, or spend, each month to help you achieve your goals.
Your spending plan or budget should be specific to you and your situation. It should also be achievable, so it doesn’t demotivate you.
If you’re struggling with setting up a spending plan, read our previous article, ‘How To Create A Spending Plan’.
Start saving
This one is easier said than done, especially during the current cost of living crisis. However, if you are able to save, even just a little each month, it can be a big step to achieving your financial goals and loving your finances that bit more.
Whether you’re saving for a rainy day, a specific treat or building your emergency fund, savings can make you feel considerably more financially stable. It’s also nice to see your savings going up each month, rather than your bank account going down.
Starting to save can be a daunting task but our money saving guide can help you to get started.
Use a benefits calculator
Did you know that UK households are missing out on £19 billion in benefits?
Additional income can make a huge difference to your financial situation and edge you closer to those financial goals. So, it’s really important to make sure you are receiving every benefit that you are entitled to.
Our free benefits calculator can help you identify what benefits you may currently be missing out on. It takes only 5-10 minutes to complete, is fully anonymous and there is no obligation to sign up to any benefits. Try it today to find out the benefits you can get!
Get debt advice
If you feel overwhelmed and are finding it hard to progress because of your problem debt, we can help. The first step to getting back on track with your finances should be to get debt advice.
Our online debt advice tool allows you to access debt advice anytime day or night, with no obligation to sign up for a solution. Simply input information regarding your current debts, income, expenditures and a few other details. This will help us to gauge your current circumstances and receive the best debt solution for you. While our tool removes the need to speak with an advisor, you can call us, email us, chat with one of our advisors via WhatsApp or book an appointment at a time that suits you, if you would prefer.
We hope our tips will help you fall back in love with your finances and achieve your financial goals. While financial management can feel daunting, it’s important to remember that you are not alone, with help available should you need it. For more financial help and information, head to our Help and Guidance section here. Or, if you would like to get debt advice contact our team or use our online debt advice tool.
