Personal Finances

How can I manage my finances?

The following three simple steps will help you to better manage your finances, and assist you in reducing what you spend for nonessentials:

• Firstly, track all your expenses in order to work out your budgeting requirements, your non-essential spending, and any spending habits (e.g. do I shop more frequently than I should?).
• Secondly, use this information to establish a working budget. Your budget should include what you will spend for example; food, housing, utilities, transportation, clothing, entertainment, etc. Establishing a budget and keeping a record of your expenditures to compare against your forecast budget expenses will help you more effectively manage your finances.
• Thirdly, create a monthly savings plan, including how much you will save each month. Having something to save for and a target in mind reinforces the saving habit.

How can I avoid debt?

Spending less money than you make is essential to your financial security. Avoid debt, with the exception of paying for education or other essential needs. If you are in debt, pay it off as quickly as possible.

There are a number of freely available resources that may provide more guidance in avoiding or managing debt, a couple of them are linked below:

Citizens Advice – https://www.citizensadvice.org.uk/debt-and-money/

The Money Advice Service – https://www.moneyhelper.org.uk

Debt Advice Line – https://www.debtadviceline.uk

UK Government – https://www.gov.uk/options-for-paying-off-your-debts