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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

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Chat to the Money Advice Service
Monday to Friday, 8am to 6pm
Saturday, 9am to 1pm.

 

How to take control over your money

No one likes paying off their debts, especially when it’s your hard earned cash. Long gone are the days when mum and dad are here to save the day. So it may come as a shock when we start to feel the pressure. But as easy as it may be to ignore those bank statements and go on a shopping spree – it’s important you take control over your money.

Not sure where to start you say? Well that’s what were here for aren’t we? Here are some top tips to get you started…

Adjust your mind set

Let’s be honest money management can be just as interesting as doing the dishes. But as dull as budgeting may sound, a major part of doing it well includes changing your attitude towards it. So before you get stuck in, visualise the end goal and you’ll be more likely to see it less as a chore and more as a journey.

Get your budget back on track

It’s not exactly fun living on noodles when money is tight, but we’ve all been there at least once. However, I you find it happening all the time, then it’s worth reviewing your budget. If you’re spending more than you have coming in, you need to work out where you can cut back. This could be as easy as making your lunch at home, or cancelling a gym membership you don’t use. You could also keep a spending diary and keep a note of everything you buy in a month. Or, if you do most of your spending with a bank card, look at last month’s bank statement and work out where your money is going. If you need help creating a budget, check out our previous blog here.

Pay off those devilish debts

As a student or recent graduate, you most likely have some form of debts to pay off. Remember unlike student accounts, most regular bank accounts don’t offer a 0% overdraft, so if you have loans or owe money on credit cards, it usually makes sense to pay off the debts that you know will charge the highest rate of interest first, these could include: credit cards, store cards or personal loans.

Create a savings goal

Now that you’re no longer pulling out hair over those debts, it’s a good time to start thinking about savings goals. The first goal is to have an emergency fund that you can full back on in times of need so that you don’t have to live off beans on toast for a month. Try to get three months’ worth of expenses in an easy or instant access account. Don’t worry if you can’t save this straight away, but it good to keep it as a target to aim for. Once you’ve set aside your emergency cash, think about what you can save towards that will motivate you in the long run. Possibly a car without taking out a loan? Or maybe a holiday without having to worry about the bills?

Turn those pennies into pounds

So you’ve successfully mastered the art of being a savvy saver, but now you’re now looking for a way to multiply your income. There are many options to choose from, but a great simple way to make sure you’ll be live more comfortably later in life is to put your money in a pension scheme. If you’re completely new to this, take our quiz to see if it’s really for you.

Taking the time to manage your money better can really pay off. Remember, it’s all in the mind set! So…now you’ve learned all the tricks of the trade, take a deep breath, it’s time to take the plunge!

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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

Launch Chat

Chat to the Money Advice Service
Monday to Friday, 8am to 6pm
Saturday, 9am to 1pm.