A beginners guide to money management
Money is often one of those topics of conversation that many of us avoid talking about. With so much stigma around handling money, it can be hard to know what is ok to discuss. Whether you’re a student, full-time employment, have a part-time job, or are even self-employed, understanding your finances is key. Understanding money management is a great way to get your money in order, especially if you are trying to save for your future or a big purchase.
As someone who has spent a lot of time understanding their own finances, I decided to create my own beginner’s guide to money management. Although please bear in mind that I am not a professional and after free impartial advice, reach out to the Citizens Advice Bureau if you are in the UK for more information. If you’re in the United States, click here for more information on credit counselling.
Here are some of the basics to consider when understanding money management.
Switching up banks is a great place to start. If you’re looking for a bank which innovative and helps you manage your finances, you’ve come to the right place. Here are some online banks that offer additional features to help with money management:
Monzo is great for money management as it helps you sort your finances into pots to work out where your money is going. Live transaction updates, so you know how much you are spending on your card. Monzo also provides you with in-depth analytics of your spending habits.
A great choice for reasonable overdrafts and a 0% fee bank account. Other great features of Starling include setting your own contactless limit for your own peace of mind. As well as card limits and how many transactions your card can make per day.
Reach out if you need help
If you find you are struggling with your finances, reach out to a friend or family member. Alternatively, a debt advice service can provide you with advice on your next steps. Making the original phone call can be more difficult than dealing with the debt itself.
Pay off credit cards
Although this may seem obvious, paying off your credit cards and only using them to spend and pay off is a great way to manage your finances. Searching for a low-interest credit card, ideally, an offer of 0% is great for savings. Switching from one credit card to another when your promotional offer is up is a great way to save money.
Set a savings goal
Suppose you’re saving for something in particular set up a savings goal. This includes the date you’d like to reach it by and how much you can afford to put away each month. If you have a bank that offers roundups, this can be ideal for saving money quickly as it rounds up your payment to the nearest £1.
Whether you’re struggling with your finances or are just looking to get better at them, you can find lots of great resources online to help with this.