A Basic Guide to Managing Your Money Better

Written by Karen Bryan

green piggy bankManaging your money means different things to different people. To manage your money well will depend on your goal, whether that’s simply living within your means or repaying your debts.

Set Up a Budget

A budget is the place to start to help you get your money sorted. It is a record of the money you have coming in, and the money you’re spending. Writing it down will help you see where your money is going, and just this alone will help you feel more in control of your money. There are budget planners available all over the internet, such as this one here.

Cut Back on Spending

If by managing your money better your goal is to spend less, then recording everything that you spend your money on will help. Even small purchases such as coffee or sweets should be recorded for around a month, or even longer if possible. With this, you will get a better picture of your spending habits and how you can make savings. Sites such as Money Saving Expert can certainly help you save money in all sorts of ways.

Pay Off Debt

If you have debt, don’t try to save money at the same time. Chances are the interest rate on your debts is higher than that of your savings, so it makes sense to use your savings to pay off your debt. You should always look to pay off the debt that charges the highest rate of interest first.

Another option is to take out a consolidation loan from someone like Nemo Personal Finance. You’ll be able to put all your existing credit in one place and know the exact amount and date payment will go out each month. You’ll no longer need to worry about various payments going out at different times. Remember, a Nemo Loan is secured on your home so always make sure you can afford the repayments

Save Money

When you decide that you want to save for something, whether it’s a new kitchen or a holiday, you should set a goal and save on a regular basis.

Emergency savings – this is around three months’ worth of expenses in an easy access account. This is a type of savings that everyone should have, just in case. After you’ve saved this, then you can think about saving for fun things such as a car or a holiday.

The easiest way to save money is to do it on a regular basis. Set up a standing order or direct debit so you don’t have to do anything to save every month.

Managing your money is about getting into the habit of checking your income and outgoings on a regular basis, as well as making sure that you have a goal with your money.