Organising your finances can help you gain control over your money, achieve your financial goals, and build a secure future, but finding order in the chaos can feel overwhelming. Here are a few simple ways to get back on track:
Create a budget
Evaluate your income and expenses to determine how much you can spend and save each month. Allocate specific amounts for essential expenses like bills, groceries, and debt payments, as well as for savings, entertainment and travel, and one-off purchases.
Track your expenses diligently
While you may not want to maintain a record of every purchase, you can automate the process using a budgeting app such as Money Dashboard. This will help you identify areas where you can cut back and save money.
Automate your finances
Set up automatic bill payments and transfers to savings accounts so you never miss a payment or forget to save.
Reduce and eliminate debt
Create a plan to pay off high-interest debts first while making minimum payments on others. Once a debt is paid off, redirect the funds towards paying off the next one. This snowball method can accelerate your journey towards financial freedom. If you’re struggling with a large amount of debt you can’t afford, contact a debt advice charity such as StepChange.
Regularly review your financial situation
Take the time to assess your progress, adjust your budget, and reallocate your resources.
To learn more about specific ways to manage your money, you can find essential factsheets dealing with everything from tax and insurance to benefits and home buying on The Guardian website.