Money management through budgeting and tracking what you spend is critical to manage the cost of living crisis. By analysing your expenses, you can separate wants from needs and move towards goal-based spending and away from impulse purchases. It can also help you plan for rainy days and secure you and your family’s financial future.
Controlling your Finances
Managing your money involves the delicate balance of always ensuring your income exceeds your expenditure on a month-by-month basis. To help become financial confident and secure you need to track your expenses and regularly set aside some savings to pay for larger unforeseen expenses throughout the year.
Separate your expenses into discretionary spending and compulsory spending. Rent for example is a fixed and unavoidable expense while car fuel may not be if you live close to public transport or can walk to work. Energy expenses can be improved by switching off appliances when not in use or choosing to shower at the Gym. Grocery spend can be managed better by meal planning and sticking to a list or moving from expensive branded goods to unbranded. Track where you spend your money now and see where improvements can be made in order to better manage increases in the cost of living. See some of our blogs below which may help: