Beginner’s guide to money management

How to manage your money by Furness Building Society

A guide to financial management

The key to true financial stability and savings potential does not always lie solely in a highly paid salary job. For many, the art of money management is the secret to financial success. Living within your means, you keep on top of your regular bills whilst also ensuring there’s a little saved over for an emergency fund.

According to Financial Capability’s Strategy For The UK, 20.3 million Brits don’t feel confident managing their own money and 61% don’t focus on the long term when it comes to their cash. As the cost of living continues to climb and many hope to tighten their purse strings, there’s never been a more perfect time to master your money.

If, like many Brits, you’re feeling the strain and are tired of struggling financially, read our handy guide to help you better manage your money and unlock the door to financial happiness.

Why is budgeting important?

Have you ever found yourself half way through the month and a costly bill takes you by surprise - or even lands you in the red? It can certainly throw you off course and understandably creates some stress around whether or not you can afford it.

If, like many money management beginners, you find yourself in this position then a budget planning sheet is definitely the trick for you. By keeping a note of your monthly income, as well as all of your outgoing costs and when they’re due to land, you'll have full visibility of your financial situation - putting you in the driving seat to plan ahead.

It’s important to create your budget in a way that suits you: whether that means creating lists with pen and paper in your favourite notepad, or you find it easier to fill out an online budget sheet. Always make sure to break down your outgoing costs into easy categories that make sense to you.

By keeping outgoings in their own category groups, such as household bills or mobile phone and subscription services, you’ll be able to see where your money is most needed, and more importantly, areas of overspend.

For example...

...if you have a salary that comes in on the 25th of each month, it would be wise to have your bills come out on the 1st to avoid you dipping into this budget allocation throughout the month. Make sure to check in with each provider on their terms and work out a date that suits you.

Create an action plan

Reassess your mortgage

Pay off current debts

Set achievable savings goals

Start building an emergency fund today

We hope this guide has given you the tools and the know-how to get your ducks in a row and take those first steps to help better manage your money each month.

Our team of experts are always on hand to answer any questions you may have about our savings accounts, and how you can make your money work for you.

Get in touch by sending us a message, by calling our team on 0800 834 312 or by visiting us in branch.