Wellbeing HubMoney management

Money management is the process of budgeting, saving, investing and spending. It’s important to learn how to manage your money effectively, if you’re looking to pay off debt, buy a house or save for a holiday.

There’s a wealth of information available, we have added some ideas below.

  • Budgeting: How to make a budget
    • First of all, it’s a good idea to write everything down. You can download a budget template from the StepChange website
    • Look at the money you’ve got coming in e.g. wages from your job. Understand what you’re spending e.g. rent/mortgage, utility bills etc
    • Calculate what you have left after each month so you can see if you have any left over
    • You’ll then be able to work out if you have a surplus (money left over) or a deficit (if you’ve got more money going out than coming in)

  • Saving: Six simple ways to save money
    1. On payday, set up a standing order from your bank account to your savings account so it’s automatically done for you
    2. If you’re wanting to make a large purchase, try the 30 day rule. Write down what it is and how much it costs, and if you still want it after 30 days, buy it
    3. Put your loose change in a pot and watch it build up. For the techy people out there, you could set up a rule on your bank app (if you can) to round up the money to the nearest pound and automatically save it for you
    4. Check all of your standing orders and direct debits to see if there is anything you can get rid of. You might be surprised!
    5. Switch energy providers as you might be able to get a better deal elsewhere. Visit the Money Saving Expert comparison tool
    6. Look at your mobile phone contract, are you on the best deal? Many providers let you switch between tariffs at no extra cost. Maybe if you are on a contract a pay as you go plan may work out better value
  • Investing: How to choose your investments
    • Think about how long you want to invest for – you should consider how soon you need your money back. Your goals and timeframes will vary and will also affect what types of risk you want to take
    • Make a plan – decide on how much investment risk you’re prepared to take. It’s best to start off with low risk, building up to medium and then perhaps move onto higher risk once you’ve built up low and medium risk investments
    • Diversify – this means to spread your money across different investment types e.g. bonds, cash or equities. It helps to reduce the risk of your overall investments
    • Be aware of the charges – investing costs money of course but make sure you’re happy with paying brokers fees and dealing charges. You may also need to pay for a financial adviser if you require one
    • What to avoid – high risk products are ones that may give you a big payout but come with a bigger risk. Examples of these are high interest running bonds or venture capitalist trusts. Read www.moneyadviceservice.org.uk/en/articles/high-risk-investment-products for more information
    • Keep an eye on them – log in to your investment platform to monitor how things are going, but don’t be tempted to change things every time the stock changes!
  • Spending: The dos and don’ts to be a savvy shopper online
    • Do – read the reviews from reliable sources and check website sellers to make sure they’re genuine
    • Do – access the website you’re purchasing from by typing in the address instead of clicking on a link you’re unsure of
    • Do – use a secure payment method that are recommended by online retailers
    • Do – pay with a credit card for purchases over £100 and up to £30,000 where possible
    • Don’t – accept requests asking you to pay by bank transfer
    • Don’t – click on links from spam emails you might receive in your junk folders (or texts!) as they could lead to fake websites

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