A recent study found that over 9 million adults in the UK worry about money on a daily basis.
We know that money management can be challenging, especially when you’re trying to stick to a small budget. Poor mental health can also make it difficult to earn and save money, increasing stress and worries over money and negatively impacting your mental health and general wellbeing.
Here at Vox Money, we have a range of budgeting tools to help you get back on your feet. So, if it starts to feel like a vicious cycle, take a look at our simple list of practical tips to help you budget for a better and brighter future.
If you are creating a budget that includes your partner or family, work together! You can only stick to a budget if everyone in your household is aware of the combined finances and contributes to the budget. This approach can also limit stress as you support each other and find better ways of saving together.
Income vs outgoing
To make your budget really work you need to get to grips with your money. Make sure you know your full amount of monthly income and essential outgoings, this will leave you with your disposable income. Consider any ways you can save money like swapping branded groceries for own label brands or changing suppliers for bills such as gas, electricity or car insurance to find the best deals.
Really understanding your income and outgoings can help put an achievable budget in place. This can reduce anxiety as you take control of your finances.
Essentials vs luxuries
Essential outgoings are those bills you must pay each month such as mortgage or loan payments, groceries, energy bills and car insurance. Luxuries include new clothes, takeaways, holidays and days out – those items or activities that you can live without, that have become regular purchases. Consider halving the amount you spend on luxuries, which can then be used as savings.
To keep yourself motivated and support your mental wellbeing, budget for treats every few weeks such as a meal out with friends or a new outfit for a special occasion.
Make sure your budget is realistic, otherwise you will feel disappointed when you can’t achieve your milestones and goals, which in turn could discourage you from continuing and bring back those money worries. Use bank statements, pay slips and bills to help inform your budget, and understand what you can and cannot spend.
Save, save, save
Savings create a safety net for us and helps when unexpected bills arise such as boiler breakdowns or car issues. As you begin to save more and more, you can feel less stressed about your finances as unexpected bills won’t cause you sudden and extreme financial difficulty.
It is recommended to save around 10-15% of your monthly income to create your financial safety net. However, if this seems too difficult to manage, just save as much as your budget allows. Learn more about how to save money here.
Make the most of our budgeting tools for a brighter financial future! Sign up for a Vox Money card to get started and put those money worries behind you.