4 Ways to Start Managing Your Personal Finances Today

Money worries are incredibly common. According to one study, even one in three children are concerned about the topic. Our relationship with the amount of pounds and pence in our pockets and bank accounts can be fraught and, it seems, this begins at an early age.

So, how do you wrestle control of your finances and make them much less of a worry?
Here are four ways you can put yourself in charge…

Spending audit

The most effective way to manage your personal finances is to be in full possession of the facts. Get hold of your bank statements from the last couple of months and go through line-by-line to see where your money goes. Websites such as the Money Advice Service have useful tools to help you conduct this audit.

You’ll then be able to see the cost of all the necessary expenses you have to make – bills etc – and of the amount you typically spend on yourself. This isn’t about punishing yourself for spending too much. You might well spot some things – an electricity bill, for example – that you can look to cut down by switching suppliers. Companies like https://www.simplyswitch.com/business-energy/ would be worth contacting. But, above all, this audit is about giving you confidence and clarity with your finances – a healthy relationship in which you know what is coming in and going out. You may well find that you have more money to play with each month than you realised. Ignorance isn’t bliss when it comes to your money.

Have everything to hand

If you don’t have a file in which to keep all of your important financial documents, then you’re likely to lose control of your finances. Get a basic filing system to keep all of your statements, policies, bills and pay slips in one place and then you’ll have everything to hand if and when you need it. It’s a simple and satisfying way to start.

Short, medium and long term goals

Managing your finances doesn’t just mean looking back at what you’ve done in the past. It’s about preparing for the expenses that you will face in the future too. You need to pinpoint things in the short, medium and long term that will crop up and ensure they can be dealt with. That means everything from your car’s MOT to Christmas presents, quarterly gas bills, holidays and home improvements.

Too many people allow these things to creep up on them as a nasty surprise. By doing something as simple as plotting these on the calendar that need never happen.

Focus on a goal and go for it

It’s important to stress that managing your finances doesn’t mean slipping on a hair shirt or locking yourself in a darkened room so you can’t spend any more money. It’s about being in charge of your accounts, not letting them get in control of you.

We all need to spend money from time to time. For someone in control of their finances this means focusing on one or two clear goals and delivering them in a managed way. So, take out a sensible loan from Avant Credit to cover the cost of a home improvement project or squirrel away some cash in a high performing savings account for a house deposit or wedding. Make sure you know the full cost and the timescale involved in saving/paying the full amount and you’ll be able to stay in control. Don’t be frightened by money, spend it in a managed and effective way.