Do you manage your money or you let money manage you?
Taking control of your money will help you to manage your money and life better.
How you manage your money as an impact on your life.
In This Guide
A budget is a detailed summary of how you spend your income. It is very important to have a budgeting system so that you can manage your money better.
They are many tools you can use to track your money with a budget.
You can do your budgeting with just a pen and paper using a budget planner like this one.
With the coming of smart phones, you can also download apps to make budgeting and managing your money easy.
3 Great Apps For Budgeting Your Money
Money manager app lets you plan your finances using a budget planner.
You can easily plan, track your expenses and your spending habits. It lets you view your budget planner weekly and monthly.
It shows a clear view of your budget and expenses with a graph.
This helps to analyses the amount of your expense against your set budget.
Money manager app is simple, easy to use and will help you to manage your money better.
Goodbudget (formerly known as the Easy Envelope Budget Aid) is a great household budget app which the whole family can use as it syncs between devices so you can share your budget with family members and friend.
It let you edit your budget and your spending easily.
Using this app means you plan your finances better and you live within your means.
Wallet budget tracker is great for tracking your income and expenditure you can synchronisation it to share with family and friends.
It supports multiple currencies and shows your financial summaries.
You can use it to analyses your cash flow, shopping habits, and manage debts.
Why You Need A Budget
1. A budget helps you to evaluate your spending habits and it forces you to adjust your spending to meet your income.
2. A budget puts you in control of your money
3. A budget prepares you for unexpected emergencies.
No more worrying when an emergency happens as you already have money you set aside.
4. With a budget, you can set your financial goals.
Achieving your savings goal without a budget is difficult whether you are saving to buy a house or saving for a new car you need a budget.
5. You can start planning for retirement easily with a budget
6. With a budget, you learn to live within your means.
7. A budget helps you to avoid debt if you have debt a budget will help you to keep up with your debts payment.
8. A budget reduces money related stress as you worry less about your money as long as you stick to your budget.
“A budget is telling your money where to go instead wondering where it went ” Dave Ramsey
How To Stick To Your Budget
Try to use cash instead of caring cards such as debit card or credit cards.
If you use cash it’s easy to track your money.
If you choose to use debit card make sure you check your bank statement and make sure you know any direct debits or standing orders that are going to be deducted from your account at any given time.
Be consistency with your budgeting. Make it your priority to plan your monthly or weekly budget and not an occasional thing.
Educate yourself more, on ways to manage money like you are doing right now by reading this blog.
Buy books on personal financial management which will help you more to stay motivated and teach you new ways to manage money.
Here are 3 books to start with
Involve your family, if your married talk to your other half, a budget will work more there are open discussions.
Many hands make light work.
If you live with your family let them know that you are on a budget so that they won’t label you or you won’t feel pressured to do things out of your budget.
Give yourself rewards for sticking to your budgeting by doing this it means you look forward to planning your budget every month and to follow through the budgeting plan so that you can reward yourself.
How To Live Within Your Means
The picture above shows how two families (Family A and Family B) spend their money.
They earn the same amount which is £1000. Can you notice how they spent their money differently?
Family A is left with a surplus of £200 which they put into their saving and investment.
Where as family B are overspending and are relying on debt by using credit cards, overdraft and payday loans to cover their overspending.
They don’t have any money to save because they are overspending and simply can’t afford to save any money.
Family B is like a rat running on a circular wheel it never stops running but it gets nowhere.
Family B is earning money but their debt continues to pile up.
They will never have enough money to save because they are busy spending money they don’t have.
“It’s not about how much money you make it’s about how much you save”
3 Ways To Track Your Spending
Tracking your spending will help you to see how much money you are spending on essential things and non-essential things.
Small expenditure can easily add up without you noticing it, so how do you track your spending?
Keep receipts, bank statements, credit card statements go through these to check whether they meet the budget you set up at the start of the month.
By doing this you can easily see areas where you are overspend.
Keep a dairy which you use to track your daily spending and sit down at the end of a week and analyses how you are spending your money.
Continue tracking your spending every month even when you think you are done.
How To Avoid Impulse Shopping.
1. Cut down your shopping trips for example if you go grocery shopping 2 times a week cut it to only going once a week,
2. Avoid checking out online retail shops as this may attempt you to buy something.
3. Always carry a shopping list for things you what to buy and stick to it.
4. Don’t carry your credit cards around.
5. Always have a budget for your shopping.
6. Ask yourself questions before buying anything.
7. Do your research before buying, read reviews see what others are saying about that thing you want to buy.
8. Don’t be attempted to buy with offers such as buy one get one free, buy one get the second one-half price. If you don’t need the second item then don’t buy it.
9. Create a wish list and put things you want to buy on your wish list.
10. Don’t always say yes, say no to spending money at times.
11. Have a No Spend Day once a week.
12. Set a timer for shopping and stick to the time you set it to. When the timer starts to snooze get yourself out of the shop.
13.If you can’t trust yourself to do the shopping and know that you are likely to divert from your shopping list then sent someone to do the shopping for you.
1. Don’t be loyal to any brand or to any shop.
Try out new brands they might be just as good or even better. Don’t just shop in the same shop try other shops as well.
2. Switch providers you use different things like broadband, power supply and banks. You might get a better deal some elsewhere.
3. Cancel services you don’t need. There is no need to keep paying for services you don’t need or use.
4. Avoid getting into debt as debt cost you a lot of money. Find ways to save money then buying things on credit.
5. Always check recipes or statements for mistakes you might be overcharged.
6. Learn to cook from scratch at home instead of buying ready made meals which cost a lot of money. Buy cook books to learn easy healthy recipes for example
7. Buy big home appliance on sale and using cash. You can get very good offers on bank holidays and on Black Fridays.
8. Limit the amount of time you go out with friends or family as this might lure you to spend more money.
9. Buy fruits and vegetable in season as they tend to be less expensive during that time. For example, strawberries are cheaper in summer months than in winter months.
10. Buy items of clothing off season, for example, you can buy your winter coat in summer when they are less expensive rather than buying during the peak of winter months when the demand for buying coat will be very high.
11. Avoid paying withdrawal fees by using a free cash machine there is always one near where you are, just a few more steps to the one that is free of charge won’t hate.
12.Walk of cycle those short distances instead of using your car
13. Winterreise your home by making your home is warm enough for winter. Making sure you don’t have any drafts coming in your home will save money on your energy bills.
14. Start gardening grow your own fruits and vegetable to save money.
15 . Buy food in bulk as it is less expensive than buying small packets.
Why You Need To Save Money
In today’s talk about managing money a lot is said without missing the word “savings”. Saving money is very important.
There are a lot of different reasons why people save money. Some of the reasons include
In life, a lot of unexpected things can happen at any time without any warning such as losing your job and illness.
Having an emergency fund will help you to see through any difficult time you will be facing.
Buying a house
When buying a house with mortgage lenders prefer buyers with a certain percentage of the deposit.
If you save more deposit on your mortgage deposit you will benefit better interest rate.
Buying a Car
When buying a car using cash from your saving you have the ball in your hand you can negotiate the price you want to pay.
Unlike when you are buying your car on credit from car finance dealers you will end up paying more money with interest being added to the credit.
Starting your working life with a burden of paying up student tuition debt can be difficult.
Debt will drill a hole in your monthly salary.
It’s wise to save money for your children’s education so that they can start their adult life without carrying this burden called debt.
Stress can be triggered by many things in life and money is one of them. Money worries such as having too much debt and not being able to pay it will make your life stressful.
If you save money and live within your means you will have fewer money worries and less stress in your life.
” Saving a small amount soon builds up to a large amount ” Scottish proverb.
How To Set A Saving Goal
If you sit down and set your plan for your named savings goal you are more likely to reach your goal easily.
Setting your savings goal will motivate you to begin the journey saving money.
Here are 5 steps for setting a smart savings goal
Step 1: Savings Goal Should Be Specific
Firstly you need to name your savings goal.
Ask yourself what are you saving for?
Are you saving money to buy a house, a car, fridge or you want to build your emergency fund?
Write down your goal on a piece of paper so that it can be a real thing.
Step 2: Savings Goal Should Be Measurable
Work out how much you want to save. For example, you might want to buy a TV in 12 months time the current price is £240.
This means you will need to save £20 each month to reach your goal in 12 months time. Calculating how much you need to save each month will help you to save regularly.
Write down on a piece of paper the amount you plan to save monthly.
Step 3: Savings Goal Should Be Achievable
Ask yourself this question can you achieve it? Look at your budget and see if this saving goal can be achieved.
If you it’s not achievable review step 2 and set the amount that you think you can achieve.
Write on a piece of paper a simple self- motivating quote like Yes I can achieve this.
Step 4: Savings Goal Should Be Realistic
Do you have means? Your goal should be realistic. Look at your goal can and see if it is realistic.
Don’t set a goal that is too high which you know you will struggle to reach.
Step 5: Savings Goal Should Be Timely
A goal should have a time scale of when you want it achieved.
They are many possible ways to save money from taking a sandwich to work or school to cooking your restaurant food at your home.
1.Using price comparison sites before buying things will help you to save a lot of money. They are a number of good comparison websites such as
2. Putting more on your mortgage payment as little as £50 more a month will help to save more money on interest and you will also cut the number of years on your mortgage.
3. Recycle things around your home such as carrier bags, papers and old clothing can be turned into cushions or rugs for cleaning not only will you save money but you will also save the environment.
4. Don’t toss clothing away because of a loose button or a small tear learn to mend clothing and save money.
Make sure you have this Emergency Sewing Kit somewhere in your house or your even your car you never know when that tear on you seam is going to happen.
5. Limit your alcohol intake your health with thank you and in the process, you will also save money.
6. Quit smoking we all know that smoking is bad for your health so why not call it quits and save money.
7. Always track your money by setting a budget and stick to your budget.
8. Go for a staycation instead of a holiday abroad this will save you a lot of preparing and it will save you money as well.
10. Pack your lunches to work or school this will save you money than buying ready prepared supermarkets sandwich packed with additives to keep them fresh for a long time.
11. Make your own coffees, tea or cuppa-chino and put it in these Triple Wall Insulated Disposal Cups or a flask like this one instead of buying them from Costa or Starbucks every morning on your way to work.
In these hard times where the future of the economy is very uncertain, it’s best to choose to stay out of debt if you have any outstanding debt its best to clear it and choose to not get into debt again.
” Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like ” Will Rogers
What You Should Know Before Getting Into Debt
Debt can be good if only you manage it properly on the other hand debt can be bad if you fail to manage it properly.
Before taking any kind of debt there are a number of questions you need to ask yourself.
What Other Alternatives To Borrowing Do You Have?
Saving money might seem difficult to start with but once you set your savings goal, you are on your way to building up your savings.
Instead of borrowing ask yourself if you can save money first then spend once you reach your savings goal.
2. Find Ways To Earn More Money
There are money ways to earn money whether it’s asking for a pay rise, taking a second job or hustling on the side like selling your old stuff on sites such as eBay or on Facebook Selling Local Groups.
3. Learn To Say No
In our society we a bombarded with so many adverts everywhere these adverts sometimes make us want to buy things we don’t really need.
Because it’s difficult to avoid these adverts, it’s a good idea to see the adverts and learn to say no to buying stuff.
If you decide to borrow ask yourself…
Do You Really Need To Borrow?
Before borrowing money ask yourself if you really need to borrow the money.
They are money ways to borrow money such as credit card, bank loans, payday loans, bank overdraft, and store cards.
It important that you think about the need of borrowing money with out making rushed decisions.
How Much You Want To Borrow?
Determine how much you want to borrow.
Don’t borrow money just because you can borrow that much. Say you go to the bank and want to borrow £5000 but the bank offers you £7000 would you take the £7000 or you would stick your £5000?
Can You Manage To Pay Back The Money?
When borrowing money you borrow with the hope that in the future you will get money to pay back.
The future is very uncertain and no-one knows what the future is going to be.
In the future, you could be earning more money or you could be earning less or there could be no income for you.
1. Annual Percentage Rate APR Of Interest
APR is the annual percentage you will be charged to borrow money from the lenders.
For example, a 5 year £10,000 loan at an 8 % APR means you would pay approximately £800 in one year in interest for the loan.
If you are paying £800 every year and the loan is a 5 year loan it means after you have paid your loan in 5 years you would have paid £4000 in interest on top of the £10000 you borrowed in total you will pay your lender £14000.
When you are borrowing money always look for a lower APR.
2. Late Payment Fees
Most lenders charge you a late payment fee, the charges vary from lender to lender. It’s worth looking at these charges before borrowing money.
3. Withdrawal Charges.
When you want to take money out of the ATM machine or cash machine with your debit card make sure you are using a free charging ATM machine. ATM machine charges start from £1.50 per each withdrawal.
4. Exceeding Your Credit Limit
If you have a credit card and you exceed your limit you might face some charges. It always good to stay within your credit card limit to avoid any charges.
5. Early Repayment Charge.
If you have a loan and you decide to pay your loan earlier than your agreed date with the lender some lenders make you pay an early repayment charge.
It might be wise to check with your lender or check on your terms and condition of your loan if there are any charges.
6. Charges For Using You Credit Card Abroad.
Taking your credit card abroad and using it might seem a good idea but beware of some charges which you might incur such as the exchange rate fees and ATM withdrawal fees.
7. Unauthorised Overdraft Charges.
Forgot that debit card payment date? This will cost you if your current account balance goes on the unauthorised negative you might incur some charges.
Always check your account balance and know when direct debits or standing orders payment dates.
If you buy things in shops(point of sale transactions ) with your debit card beware that some shops delay showing transactions on your account which might make you think that you have money in your account.
7 Tips To Manage Debt.
1. Make a list of all your debts and how much to owe, this will help you to see how far you are on paying off your debts.
When you make a payment reduce the amount you owe on this list.
2. Create a debt payment calendar and set a reminder on your mobile phone a day before each payment.
This will help you to pay your debts in time and to avoid any late payment charges.
3. Try not to skip any debt payments as this will increase your debt.
It’s better to pay the minimum payment than to skip a payment, although paying minimum payment doesn’t help when you are trying to pay your debt fast.
4. Make extra payments if your budget allows and if you can afford to.
This will means you can pay your debt fast and also this will lower the amount of interest you have to pay to the lender.
5. Choose either to use the debt-snowball method or debt stacking method to pay your debts.
*Debt-snowball method is when you owe more that one debt and choose to pay more money on the smallest debt whilst paying the minimum payment on larger debts.
*Debt stacking method is when you have more that one debt but chooses to pay more on the debt that has high-interest rate whilst paying minimum payment on the other debts
Both these method of clearing your debts work in different ways you just need to work out which one works best for you and your money.
6. Reduce your expenses to free some money which you can pay towards your debt repayment.
If you are able to keep up with your debt payment plan it means you are managing your debts better.
Debt Problems – Where to Get Help?
If you are experiencing debt problems it’s very important not to suffer alone.
Talk to someone and ask for help. There many organisations which can help you to manage your debt.
Here are 4 places to go when you have debt problems
Debt Advice Foundation is a registered charity which offers advice and support to anyone worried about their loans, credit card payments and debt.
It helps people who have debt problems, providing them with better solutions to manage their debt.
They educate people how to manage money better.
How to contact them
Visit debtadvicefoundation.org or call 08000434050
Step Change is a debt charity registered organisation which offers a range of debt solution.
They offer advice on how to reduce your debt and stay out of debt.
They help you manage your finances better with making use of a budget and by creating a debt management plan.
Stepchange will also advise you on your rights a debtor and will help you calculate if you are getting all the benefits you are entitled to.
How to contact them
Visit Stepchange website or call 08001381111
Citizen Advice is one of the UK’s largest advice provider it was formed in the 1930s. They give advice on problems that people are facing.
The give information on many different topics including debt, employment, tax, benefits and law and your rights.
They help you if you have any of these problems.
*A dispute over a debt
*Debt relief orders
*Morgate repayment problems
*Eviction for mortgage arrears
They even help you out with sample letters to use when you are contacting your creditors about your debt problems.
How to contact them
Visit Citizen Advice Website or call 03454 04 05 06
Community Money advice is also a registered charity with 160 centres scatted around the UK.
They offer face to face advice on a number of money problems including debt.
They help you to budget your money more wisely and provide debt management plan that suits you.
If you are having problems in paying your debt they can talk to your creditors on your behave and negotiate repayment plan which you are comfortable with.
How to contact them
Visit Communitymoneyadvise or call 01743341929
4 Important Things To Consider Before Opening A Bank Account
Gone are the days when people used to keep their money under the mattress.
These days people use Banks to help them manage their money better.
There are many banks available now than before, choosing the right bank to open your bank account will help you manage your finance better, but before opening a bank account there are things you need to consider.
1. Type of Account
Before opening a bank account you need to know what you are going to use the account for.
They are two main accounts which are mainly offered by banks current and savings accounts.
A savings account is a deposit account which you can put your money into and earn interest on the money.
The interest rates that you earn vary from bank to bank.
A current account allows you to pay in money in the account and make any banking transactions.
With a current account, you can set up direct debits and standing orders to pay your bills such as gas and electricity.
It comes with a debit card which you can use to withdraw money at ATMs and carry out any point of sale transactions.
2. No Monthly fees
Check whether the account you want to open has any monthly fees charges.
Most current accounts have monthly fees that you have to pay.
However, some banks offer current accounts which are free from any monthly fees.
These free current accounts are worth looking into, as you can save money by not paying any monthly fees.
You will still enjoy some of the benefits of those who have current accounts with monthly fees.
3. Minimum Balance
Some banks account require minimum balance which can be from £ 1 to £500.
This minimum balance is money that the bank just hold in order for your account to be open and for it to operate, in most cases it does not any interest.
You are not allowed to withdraw the money whilst the account is still active you can only access the money when you close the account.
It’s better to open a bank account with a low or no minimum balance.
Banks now offer many ways in which their customers can access their accounts. Before opening your bank account make sure that you know how you want to access your account.
Many years ago banking used to be done in person but nowadays technology changed our banking practices.
5 Ways to Access and Manage Your Bank Account
* Visiting your bank
*Point of sale transactions
Choosing the right bank account will help you manage your money efficiently.
Increasing Your Income
Finding other ways to boost your income will help you meet your financial goals and you can budget your money much better.
10 Ways To Make Extra Income
Completing surveys online can be time-consuming but you can earn a little bit of extra cash doing surveys. They are many surveys companies which you can join which include:
Doing surveys won’t make you rich but they can provide you with a little bit of extra money.
2. Taking Part In Clinical Trials
They are many clinical trials that are carried out to find more about medicine on certain diseases. NHS Hospitals and science research laboratories are regularly looking for volunteers to come forward to their clinical trials.
In return, they will compensate you with money which can be up to £2000 per each clinical trial.
Of course, it worth researching more about any clinical trial before signing up as some trials are high risk. Here are 3 places you can sign up for clinical trials
3. De-clutter And Selling Unwanted Books
If you have got novels or text book lying around your bookshelf gathering dust. These could be books you no longer want or use.
There are many places where you could sell used or new books.Here are 4 places you can sell your books:
2. We buy books
4. Dog Sitting
Dog sitting is another way to earn a little bit of extra money. If you love dogs why not turn your love of dogs into an income stream and start dog sitting.
5. Recycle Your Old Phone
Have you recently upgraded your smartphone? What did you do with your old phone?
There are many sites where you can sell your old smart phone. Most buyers prefer the phone to be in good working condition.
Here are 3 places where you can sell your old phone
6. Get A Second Job
Get a second job to earn a bit of extra money work out if its worth by calculating the tax you have to pay for in your second job.
7. Becoming An Extra In a Film
Fancy being an extra in on TV films such soaps like Holby City, Eastenders or Emmerdale or even to appear in movies?
You can easily earn a bit of cash by being an extra in a film.
Here are 3 places you can register your interest in becoming a Tv Film extra
8. Sell Clothes On eBay
If you have got used clothing or gift that you were given but were not of your taste why not declutter your wardrobe and your house by selling those items on eBay.
9. Baby Sitting
Baby sitting is an easy side job if you love babies you will love to baby sit them.
So what holding you?
Start advertising to friends, neighbours and family you will soon be a very busy person high in demand. Many parents would appropriate that break from their babies
10 . Sell Your Photos
Photographing used to be done by only professionals but nowadays things are changing every one carries a mobile phone with a camera.
There is no need to buy any expensive camera most mobile phones take great photos.
Use your mobile phone to take pictures and sell them on sites such as:
Money management is a big subject which comprises of saving money, debt, spending money, budgeting, and banking.
It’s an on going process that you have to learn to now, to gain better control of your finances.
If you manage your money better the benefits can really pay off.
Start using a budget today and your money will thank you for that.
I do hope that these money management tips in the guide will help you to grow your money and live a better life.
Over To You…
Being in control of your money is a great stress reliever.
Are you doing enough in managing your money?
|FREE Weekly To Do List Printable
Free gift for you, just fill in your email address to get your Weekly To Do List Printable and updates on our new articles.