With a cost of living crisis in full swing, many of us are looking at ways we can manage our finances. Getting a handle on your finances is important if you want to build financial security. If you’re not sure how much you should be saving or spending each month, read on. 

Disclaimer: This post is a collaboration

Managing your money: the key to saving 

If you want to become financially secure, it’s important that you manage your money. That means you need to understand exactly how much you’re spending and saving each month. 

Look at your bank account and write down everything you spend each month. Include everything from your monthly mortgage or rent payments to your food shop. Even include holidays if you tend to go away with the family. 

Then calculate your income. Be sure to include your salaryand wages from freelance work. 

To figure out what you can afford to save each month, subtract your total outgoings from your income. The money left over you should be able to save each month or set aside to pay off any debts. 

How to keep on top of your finances 

According to statistics, 63% of 18-34-year-olds are anxious about their finances. One way to help reduce anxiety is to keep on top of your finances. Here are some things you should try:

• Make a list of all the essentials you spend money on. Then you can budget what you have left. 

• Set up direct debits to pay bills as soon as you’ve been paid. Most providers will let you choose a payment date. If you know your bills leave your current account on the 1^st of each month, you know what’s left is yours to keep. 

• Check your bank balance. By checking your bank account regularly, you can see what you’re spending and if you’re on track. If online banking, use a secure Wi-Finetwork. If there’s any doubt, use a secure VPN as an added layer of protection. 

• Manage your debt. If you can afford to, set up a standing order to pay your bills in full each month. 

How to save each month 

Saving is important, no matter how much you earn. This is because it helps you cover unexpected costs. 

If you don’t already have savings, start by creating an emergency fund. An emergency fund should be enough to cover you if you suddenly lose your job or your car breaks down. You should have at least 3-6 months’ worth of expenses set aside. 

You might also want to save by creating saving spaces. Many modern banks allow you to set up extra ‘pots’ of money to save for specific things. They’re separate from your main bank balance, so you won’t accidentally dip into your savings. 

Final thoughts… 

Managing your money can be daunting. But it needn’t be. By keeping track of your expenses and working out what you can save, you can better manage your money. What’s stopping you?