Managing your money can feel like a constant battle.

Between living life to the full, paying off debts and buying a home, saving for your future can seem out of reach. If finances isn’t an open conversation in the family home, it may feel harder to ask the tough questions and get the answers you need to properly manage your cash.

It’s safe to say that when it comes to money, we’re probably all in the same boat, unsure of where to turn for the right advice. Sometimes it can feel like you are sinking however learning how to swim actually isn’t as hard as it first seems.

Here are six tips to help you take control of your cash before it takes control of you.

1. Set clear financial milestones, goals and objectives. It’s hard to put money aside if you don’t know what you’re putting it aside for.

The best way to start saving for your future is by setting short term and long term financial goals. Whether that’s saving short term for a car/ holiday or long term for a deposit on your dream home or starting your own business, having clear goals will keep you motivated to save money more regularly.

2. A budget doesn’t restrict you – it frees you. If you’ve never built a budget before, now’s a good time to start! Sometimes budget can feel like going on a diet, most of the time diets fall apart because you restrict yourself, however a budget doesn’t mean restriction.

Simply put you need to work out the following;

  • how much you earn each month
  • how much you spend on utilities- rent, food, bills
  • how much you need to save to hit those future financial goals.

A budget helps you keep track of your money so you can hit your money goals in the short term and move closer to the long term goals. Keeping those goals and financial ambitions in sight will help you stick to your new budget!

Got money left over after covering your living expenses and savings? Treat yourself! Life is about balance make sure you enjoy yourself, go out for that cheat meal, get that outfit, go for that day out- spend it on whatever you like, it’s your fun fund.

3. Weigh up your wants and needs. Ask yourself: Do you really need that new pair of trainers, or is it because that one Instagram influencer you love is showing them off on her stories? Are those new kicks more of a want than a need?

If they’re a want that’s absolutely fine, but it’s a good idea to be clear on what purchases sit in which camp. Are you spending 99% of your salary on wants and neglecting the needs? It may be time to reshuffle your spending.

4. Don’t let your monthly bills haunt you, take charge of them.

Review your direct debits and subscriptions and cancel the ones you don’t use anymore. Remember to shop around for your bills. There are some amazing deals for your electricity and gas out there, make sure you take some time to research and take a look!

5. Confront your debts. Get clear on what money you owe and the interest rates that apply. Paying off loans with higher interest rates could help save you huge amounts of money, and the sooner you pay off your loans, the better. Maybe there’s even room in your budget to pay off higher amounts?

Every bank charges interest on any money they lend to you. It’s how much they charge you for borrowing money from them. So, when you pay them back, you’re not just giving back the money you borrowed, you’re paying them for letting you borrow that money too – and that’s
how they make money.

Interest rates differ depending on the bank and the type of loan, so it’s a good idea to understand who’s charging you the most with the highest interest rate.

6. Don’t let finance deals and credit cards fool you. Credit cards have lots of perks like points, air miles and benefits for your credit score, but they can also lead to a build-up of high-interest debt. It is important to make sure you stay in control of how you use your credit card – don’t get carried away. It’s the same story with making a purchase on finance – when you can buy something expensive by making payments in instalments over time. They’re tempting and seem like a great option at the start but you might get stuck making hefty repayments for years, because you’re essentially taking out a loan you need to pay back. So look at the bigger picture before making any promises.

Manage your risks by taking out the appropriate insurance. In your twenties it is so easy to overthink any and every situation but what is not always considered is what happens to personal financial goals if income stops. Life isn’t always mapped out like we expect, serious/ critical
illnesses and accidents do happen and they can affect you in more ways than just your well being. They can cause great financial pain, just as much as damaging or losing your kit could also cause you a financial hit.

We at Absolute Military do not want you to damage your savings and with our insurance guidance and advice we can aid you to stay on the path to achieving your financial goals.

Managing money can be hard, but don’t let daunting finances give you sleepless nights. It is important to have open conversations about your risks and finances.

Contact Absolute today and lets get you managing your money efficiently.