Make money go further
There are plenty of ways to be better with money
How’s your bank balance looking? Are you keen to stretch your finances as far as they’ll feasibly go, but you need a hand getting started? If that’s a resounding “yes” then full view, smart budgeting could be your new best friend!
“[Close to] one in two adults (45%) in the UK don’t feel confident in managing their money day to day”, according to research from the Money and Pensions Service’s (MaPS) Financial Wellbeing Survey, 2021.
This matters. The average Briton is spending an average of 1,791 hours a year in work, and half of these people reportedly feel overwhelmed when managing the money this time investment is making them. Alas! It sounds alarming, but all is not lost. There is support for the finance-phobic masses out there.
Money management tips
The following suggestions are designed as action points for anyone who craves a sense of financial control, but they equally find the idea of looking at their finances -regularly- nightmarish. Cue our gentle hand into the world of personal money management.
Start budgeting, regularly.
Financial mobility often starts here. If you’re happy doing it manually then start a budgeting sheet and comb through your bank statements. Alternatively, you can use an online budget calculator like this one from Money Helper. Pull together an overview of what you’re earning and spending every month into one tidy, visual place. This alone should help you to feel more in control of your finances.
Set it up for the next year and adjust any months that have historically been more expensive for you, e.g. August as you have more family birthdays to spend on that month, for instance. Figure out how much more you’re likely to need in these pricier months and save a little every time you’re paid to prepare for this.
If minimal effort budgeting sounds more like your thing then consider automating what you can using a money saving and budgeting app, like Plum.
Take stock of your subscriptions
Are you subscribed to something you never use? Highlight these expenses as you comb through your bank statements and cut what you can. You’d be surprised how much this can save you over the course of a year!
Food shop for less
Are you getting the best deal on your groceries? Compare supermarket prices with Trolley to find the best price going, before cruising the aisles of your local convenience store. Sometimes veg boxes from your local farm work out cheaper than loading up on veggies in the supermarket too.
Use whatever free resources are available to you as well. Food banks (if you’re eligible to use one) and food waste reduction apps like Olio can be brilliant for filling the fridge, for free.
Look good, do good
Shopping smart for clothes from sites like Vinted, Depop and eBay keeps you looking fresh for less, is eco-friendlier and puts money back into the pockets of small-time traders.
Get the best online deal
Installing a shopping assistant extension on your web browser can save you a decent amount of money over time. Honey and Karma trawl the internet for coupon codes that can easily be applied to what you’re about to buy.
Ask yourself these questions before spending on luxuries
“Is this a want or a need?”
“Can I really afford it?”
“Will buying this improve my life enough, relative to how much it costs?”
“Will I use this often?”
“Can I borrow this from somewhere instead?”
Knowing your financial goals will make this simple Q&A habit even easier to adopt. It’ll probably feel better splashing cash on something you’re confident you truly need whilst also knowing it aligns with your long-term financial goals.
Is there wiggle room to save?
This mightn’t be an option for you right now (given the rising cost of living), but if you can save anything after trimming your spending habits down then that’s a big win. Putting what you can into a pot for anything, from emergencies to a little holiday with your mates should feel good. Setting up a round up feature through an app (like Moneybox) or directly via your bank is probably the lowest effort way you can save, little and often, without having to think too much about it.
If you do have a fair amount left over after essential spending (housing, bills, food, etc) then the 70/20/10 breakdown might work with your budgeting plan; Scotland Debt Solutions explains that this rule “allocates proportions of your income to three different areas – living costs, debt, and savings. The sheer simplicity of the budget helps you control spending, repay debt, and build a nest egg for the future”. It’s by no means a budgeting solution for everyone though (those on a lower income, retirees and students might find the ratio suggestions unrealistic given the money they’re working with).
Doing something is better than doing nothing
Facing up to your finances can feel like a huge leap for many, so high-five for starting small with even one of these suggestions! This list is by no means exhaustive - there’s a whole bunch more to be done if you aspire to being a dab hand at managing your personal finances.