Effective money management comes easy to some, however, for others saving money can be more of a challenge. If you often find yourself running out of money towards the end of the month and you find it difficult to save, it might be time to take a look at your money management habits and identify areas for improvement.
Improving your money management skills will not only help you to increase your bank balance, it can also help you be better prepared for any unplanned costs or financial emergencies. That’s why we’re offering our top 5 personal money management tips that you can implement today to improve your financial future.
1. Install a money management app
These days there are a wealth of apps and tools that help you manage your money better and, fortunately, some of the best money management apps are free.
Money management and budgeting apps can help you to track and limit your spending, stick to your budget and identify different areas where you can save money; making them an essential tool for anyone looking to improve their financial situation.
One great example of a money management app is Money Dashboard which keeps track of all spend and allow you to connect directly to your banks.
2. Set up a budget
Setting up a budget and sticking to it is a crucial aspect of good money management. This allows you to see exactly where your money is coming from and going to, and it can also help you to determine whether you can account for any unexpected bills.
In order to create an effective budget, you’ll need to make a list of all of your monthly expenses. This includes spending on essentials such as food, utilities and rent. Once you have this information, you can see which areas are eating your budget and identify areas where you can cut back.
For more details tips on setting up a manageable budget, check out Citizens Advice
3. Set small, realistic money goals
You don’t have to start out saving large sums of money in one go. Setting smaller goals to achieve is a much easier way to manage your money and get your finances back on track.
For example, you could aim to save at least £10 in spare change per week. This is a realistic goal that allows you to build up funds, without putting pressure on yourself to save huge amounts of money at a time. Over the year, your spare change will add up to £480 that you can add your savings pot.
4. Get your family and friends on board
It’s incredibly difficult to restrict your spending when there are others around you who aren’t doing the same. That’s why getting additional support from your family and friends can help you to stay on track and achieve your financial goals.
Make sure to inform your family and friends of your plans so that they can help you avoid the temptation to spend. Even better yet, you may even be able to recruit someone to be your ‘money buddy’, so you can improve your money management as a team and benefit from added support and motivation.
5. Set up a standing order
If you’re finding it difficult to actively save money, why not automate it? You can set up a standing order from your main bank account to your savings account, so that you save money regularly without even realising it.
You can select the amount, the date and the account you want to send your money to. This means that you can even send your money to a friend or family member if you think you’ll be tempted to spend your savings before you’ve reached your goal.
Improving your money management skills doesn’t need to be difficult. Simply start small and stick to your new healthy financial habits, and you’ll have everything you need to work towards financial freedom.