Financial struggles can happen regardless of income level

Anyone can experience financial problems, but there are steps you can take to make improvements.

09:41 14 June 2014

Anyone can experience financial struggles, even those with high incomes. Managing finances requires time, attention, and conscious decisions throughout the day. When our days are hectic, it becomes more important to save time than to spend wisely. This cycle produces poor financial habits because of the ease and the immediate benefits: saving time. 

 

Here are a few ways to change your financial habits and improve your situation before it becomes too unmanageable. 

 

• Set boundaries—one of the first things you should do is figure out what your financial boundaries should be. If at all possible you should ensure that you have money available at the end of the month. This involves setting spending limits, and putting some funds each month in savings. 

 

• Track all spending—it’s a pain, but the most important thing you can do to improve your finances is keep track of all your spending. Software or special apps can make this a little easier. Many apps are able to show you charts of your spending and it may surprise you how much of your income is spent on extras. 

 

• Identify areas to improve—once you have tracked spending for at least a month to three months, it’s time to look at the average spending for various categories. If your debts are a large category you might resolve to spend more to pay it off. Even £10 extra on a credit card payment per month can help you get rid of those pesky bills, and reduce the amount of interest you pay. Each person is different, so your area of improvement might be to put more in savings or look into investments. 

 

• Get support—changing financial habits and sticking to a budget can be very difficult and may even feel discouraging for some people. During these times, a bit of encouragement from loved ones could help a great deal.