There are some people out there who seem to have everything immaculately organised. The colleague who turns up to the meeting with colour coordinated notes and three extra pens, the friend who’s 10 minutes early for everything and the flatmate who has a carefully categorised spreadsheet detailing the bills they have paid. However, this scrupulous organisation doesn’t come naturally to everyone.
If you’re less of a planner and more of a “go with the flow” kind of person, you may find it tricky to keep on top of your finances. The good news? With a little determination and a nudge in the right direction, you can learn the financial habits you need to manage your money effectively and achieve your goals for the future.
Here, we explore some tips for instilling good financial habits.
In this article
Automate your outgoings
You’ll feel more financially responsible if you know you’ve got a system in place to automatically pay each of your bills when they’re due. Set up direct debit payments for all your monthly costs, such as rent, utilities, your phone bill etc. This will mean you don’t have to worry about making payments on time, or accidentally spending your rent money on those shoes you’ve been eyeing up.
Set a budget
Budgeting might sound old fashioned, but it’s an extremely effective way to manage your finances and ensure you spend your money wisely. If possible, leave room for an emergency fund in case an unexpected expense pops up, for example, your car breaks down or your reading glasses break. However, if this is not an option, you may want to consider a better (and more flexible) alternative to a bad credit loan.
Get savvy with saving
Chances are when you check your monthly expenditure, you’ll find one or two things you could live without, so look at your latest bank statement and see what you could scrap. Perhaps you’re paying £40 a month for a gym membership you never use or you’re still subscribing to your ex’s favourite newspaper. Cutting these unnecessary costs could help you save a significant amount over time.
Think about where you want to be in the future. This can be as far ahead as five or 10 years down the line, or you could look at a more short-term goal, such as the next six months. Considering what you want your life to look like can make it easier to stay motivated to save money and make smart financial decisions, so set yourself small, achievable goals and see how chasing after them can completely overhaul your mindset.