Navigating Finances: Practical Tips and Insights

This post is written in collaboration with MoneyPlus.

Managing finances no matter who you are in the current economy can feel like an uphill battle. However, a recent survey shared by MoneyPlus conducted a survey which showed in particular that 85% of single parents worry about their financial future, with some of their biggest concerns being debt, rising living costs, and not having savings.

The good news is though that for everyone there are steps you can take to regain control, so here are some ideas to help you navigate your finances, no matter where you’re starting from.

Know Your Numbers

The first step to managing your money is knowing exactly where it’s going. Create a budget which includes all your income and fixed expenses such as rent and utilities, alongside your more variable costs such as your weekly shop, entertainment and clothing. This will give you a clear picture of your finances.

Tip: Unexpected expenses can often throw your budget off track. As such it is worth setting aside even a small amount for an emergency fund each month.

Seek Out Financial Support

If you are struggling with your finances it might be worth looking into what financial support you could be entitled to. For instance, those on low incomes might be eligible for Universal Credit, which these days takes over from legacy benefits such as tax credits, child tax benefits and more. 

You might also like to take up a side hustle, the government offer a £1000 “hobby allowance” where in certain circumstances you do not need to report it to HMRC.

Cut Costs Without Compromising Quality

Many of us are having to cut back on everyday essentials, and this can be hard. After all we all need to eat and pay our bills. Just this week, for instance, I remembered our sim contacts had run out and managed to save a pretty penny by going back into contact. However, there are other creative ways to save money! 

• Meal Planning: This can help to reduce food waste and lower your food bill, while apps like Olio can help you find food on offer in your local area.
• Switch Providers: When a contract comes to an end it is a good idea to compare prices and see if you can get a better deal.
• Shop Second-Hand: Charity shops and online marketplaces can be goldmines for clothes, toys, books and so much more.

Tackle Debt Strategically

Debt can be a stressful issue, especially if you are finding rates rising, or you took the loan out when you were better off financially. If you’re facing similar issues, don’t ignore them.

• Prioritise High-Interest Debt: Pay off the debts with the highest interest rates first.
• Talk to Lenders: Many creditors offer repayment plans or temporary relief.
• Seek Advice: Charities like StepChange or Citizens Advice provide free guidance tailored to your situation, check out this post here for some more ideas on where to seek advice.

Focus on Your Financial Future

This might be hard as day-to-day expenses often take the most thought, however, you might want to set yourself a small goal. Perhaps you would like a new jumper or pair of shoes, so think about putting away a few pence every week. You could round up just one or two payments and yet you would slowly see the money build up, which can be incredibly motivating. 

Take Care of Yourself Too

Financial stress can take a toll on your mental health, which in turn affects your ability to manage money effectively. As such remember to look after your well-being by seeking support from friends, family, or even professionals. Remember, you don’t have to do this alone.

Final Thoughts

Navigating finances is tough, but with the right tools and mindset, you can make progress. Use resources like budgeting apps, seek advice when you need it, and learn to ask for help. 

What is your top tip when it comes to navigating finances?

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