Top Tips for Managing Money

Consumers face various spending decisions each day, requiring them to exercise discretion, discipline, creativity and sometimes restraint.

Who has the best price? Can I afford this flat? Where am I going to get the money for summer holiday? Answering questions such as these is part of daily life for UK consumers navigating complex personal finances. The more effective you are working out spending dilemmas such as these, the greater your ability to sustain your financial health, over time. Fortunately, sound financial advice is available, pointing you toward personal finance success.

Do You Need a Money Mentor?

Navigating money matters can leave you feeling like you’re the only one facing financial challenges. Though the pressure is real, the truth is you’re not alone sorting out complicated financial affairs; many UK consumers face similar uncertainty, angst, and worry, managing their household finances.

A money mentor provides financial guidance when you need it most. Though paid help is available, your mentor doesn’t have to provide formal services. Instead, you may find help close to home. Are your parents astute money managers? Do you know someone successful, with proven abilities managing money? Do you follow a high-profile financial advisor? Whether through observation or direct interaction, any of these sources may yield financial mentoring.

Can You Do Better Banking?

Loyalty to your financial institution means less than it did in the past. The financial industry is now extremely competitive, which can work in your favour. Rather than stay loyal at your own expense, it may be more cost-effective for you to switch banks.

From online loans for bad credit applicants to current accounts, lenders and banks want your business; they may offer incentives to attract your patronage. In the case of short-term online loans, providers use speed and convenience to draw customers, who may need money in a hurry. Banks appeal to potential customers with perks, including offers of “free” money for switching current accounts.

Whilst switching may lead to better banking deals, it’s important to match your finance needs with the bank you select. Frequent travelers abroad, for instance, appreciate banks with low foreign transaction fees and other travel-friendly policies. And if you like automated services, select a bank that can link all your accounts for easy management in one virtual location.

It May be Time to Apply the Brakes

Just as careful deliberation improves other aspects of your life, slowing down can also have a positive effect on your personal finances. Too many finance scams prompt victims to rush into financial commitments, taking advantage of their hasty actions. Slowing things down reduces your exposure to fraud, ensuring you’ve taken time to consider all the details, before making financial commitments.

Adopting a deliberate, yet reflective pace enables you to weigh financial alternatives and set out in the most sensible manner. Jumping in with both feet, on the other hand, can compromise your finances. Did you do due diligence? Can you afford to meet payment deadlines? Are cost-effective alternatives available? Taking the time to answer these and other relevant questions can help you avoid bad deals and negative financial outcomes.

Never a Bad Time to Decrease Debt

Paying down debt is almost never a bad idea. To the extent you can reduce your debt balances, you’ll pay less interest each month, and you’ll free credit resources, which may be needed for subsequent spending demands.

High-interest credit cards and store cards with revolving balances may be costing you more money than you think. To have the greatest impact wiping debt, start first with your most costly balances, before moving down the line to less expensive obligations.

The fact that everyone manages money doesn’t necessarily mean people are naturally skilled at it. On the contrary, help is always welcomed, devising efficient, effective ways to keep your finances on track. Slowing down, switching banks, reducing debt, and modeling a financial mentor are only a few of the ways to improve your money management style.

Paul graduated in 2001 with a degree in Finance. Since then he has gone on to work for several of the UK's most well-known financial institutions.

An avid blogger and a huge football fan, Paul is here to guide you through the ins and outs of personal finance and perhaps save you some money in the process!

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