With this in mind, Emma-Lou shares her key money management tips:
Tackle your debt if you can
Borrowing money is not always a bad thing and can often be unavoidable in tricky financial situations. As long as you pay your bills on time, you’ll be building a positive credit history. However, there does come a point when you can have too much debt, which can cause a lot of stress. If you’re struggling with paying off an overdraft, try to develop a clear plan outlining how much money you can realistically afford to pay off each month. If you have credit card debts, focus on those with the highest interest rates first and keep track of your due dates so you don’t incur any late payment fees.
Look at where your money goes
Although it might seem obvious, paying attention to your budget can really help your money management skills and preparation for the future. The simplest way to keep an eye on your budget is to note down your daily, weekly, and monthly spending to see where your money goes out and comes in. Alternatively, some banking apps can help with this and there’s budgeting apps out there to suit everyone.
Take the time to really consider your next big life decision
Given the financial challenges of last year, it’s no wonder so many of us have reconsidered major life plans. With the UK awaiting the removal of some of the last lockdown restrictions, now is a good time to move a few of those plans back onto your priority list so you can financially prepare for them. For example, house prices have increased so you may need additional funds for a deposit if you’re planning on moving home or you may want to build a bigger nest egg before starting a family.
Try to create a rainy-day fund
When money is tight, saving can seem daunting. While some experts recommend having enough savings to cover three to six months of your living expenses, this can be unrealistic for some. It is good practice to save wherever possible for a ‘rainy-day’, so you’re prepared for the unexpected. When it comes to saving, every little helps.
Talk to someone
If you feel comfortable discussing financial concerns your finances with family, friends, or a partner, they may be able to put your mind at ease. Additionally, there are free and impartial resources available, such as the Money Advice Service and Step Change, providing expert debt advice. Although it can be uncomfortable talking about money, it’s always best to start the conversation if you are struggling.
