Finance, a word we all think we understand… However, how much do we really know? It firstly occurred to me that money and finances are important topics of conversation universally, when I spoke to my friend about potential future investments and she looked at me quite blankly. As I studied Mathematics and Finance, I always had a good idea of how money worked, however personal finance was something that was never taught and somewhat neglected. So many of us start earning money and we have no idea what it means to budget, what a credit score is, the importance of a credit score or how to invest. I decided to try to bridge that gap by creating www.refiendcurrency.co.uk. This website has been created for the new age of women and money. It’s about time we take charge of our finances and take charge of our life.

Don’t Make Plans For Your Income Every Month

Whether you are paid on a regular basis or not, it’s important that you don’t find ways to spend your money every time you receive new income. If you honestly feel like you don’t know what you want to spend on this month, you could put more in savings and decide to live on a lower income for the time being. If we always make plans for the money we work for then we may end up living for today instead of investing for tomorrow. In situations where you can, learn to live on less even though you may not need to in order to instil financial discipline into your life.

Get Out Of Debt

Whether it’s a credit card, loan or an overdraft, paying off your debts should be a top priority. The most important factor is realising that you are in debt and that it is a problem. Many people live in constant debt and get so used to that lifestyle that it is no longer a concern but a way of life. Nonetheless, consistently being a debtor doesn’t give you peace of mind, especially when you don’t want to feel guilty about buying something new. A few ways to tackle your debt:

– Pay off the debt with the highest interest first. This is the debt that is costing you the most money so it makes sense to make this a priority. Call the creditors and let them know how you’ll be making payments to clear it off.

– Reduce your expenses. There are so many direct debits we don’t actually need and when you’re in debt, identifying your needs versus wants is vital. A few months without Netflix or Spotify won’t be the end of you. Neither will eating in rather than ordering takeout or going for a cheeky Nandos.

– Prepare your mind set for paying off your debt. This means acknowledging that you may have to stay in more often than expected or deciding not to go on holiday for a while. Preparing yourself mentally to pay debt means that you can pre plan how to spend your time in other ways that don’t cost you as much. Regardless of what you choose to do, it will be definitely be worth it when you know it’s contributing to getting out of the minus sign permanently.

Get An Emergency Fund

The best thing about having an emergency fund is that in the event of an emergency, you know you don’t have to dip into your savings. Emergencies may be being unexpectedly unemployed, needing car repairs you didn’t budget for or needing to book a flight for a family crisis. 

Everyone has a different requirement to how much an emergency fund should be. Try starting with one month worth of your salary then three months. If your money is precious then start by saving £20 a week, this still adds up to a tidy sum of £1,040 a year. No matter where you start off, it is better to have something rather than nothing.

Learn To Say ‘No’ Sometimes & Budget At All Times

A dinner here and a dinner there may not seem so bad… until you need to pay an essential such as a phone bill, but you’re out of funds. The best way to stay out of sticky money situations is to have a budget. While budgets may not sound like the sexiest thing in the world, having one is better than unplanned overdraft fees. So before you say “yes” to that dinner invite ask yourself if you could say “no” and change dinner into a coffee after work.

Learning to say no to yourself as well as your friends every now and again won’t hurt either; for example there are so many ways to recreate your wardrobe instead of adding to your shopping basket. Every time we check what’s in the stores or what looks good on online, we can make a ‘want’ into a ‘need’. Ultimately you have to ask yourself if it’s something that is currently feasible based on your budget. If the answer is no right now it may be yes next month and by then you’ll know if you really want it or not.

Whilst we all mess up our budgets it’s definitely key to get back into managing your money before completely going off the rails. Realise that becoming responsible with your money is a journey and you may not get it straight away but you will become better over time.

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