Have you ever been in a poor financial situation? Continue to read and it will find helpful advice about managing your personal finances.

  1. Create a budget.

Your first task for the month has to be creating your own budget. Even if sometimes you cannot stick to it due to the appearance of unexpected expenses. However, a plan for your finances will help you to create a balance in your financial well-being. The budget needs to be as detailed as possible. Besides, adding a section for an unexpected bill will be an additional chance to avoid busting your budget.

  1. Analyse your expenses.

It is common that people do not know their exact expenses every month. It is not only your rent or mortgage, your transport costs or your utility bills. It is about every pence that you spend. This will allow you to see the whole picture and know how to manage your expenses going forward. For instance, your everyday morning trip to Starbucks costs you about three pounds, if you do not include this in your budget, at the end of the month you will be wondering where are this money. The solution is to collect all receipts of what you pay and analyse it at the end of the month. In this way, you will be able to make a comparison with different months.

  1. Reduce unnecessary spending.

After analysing your expenses, you will have a detailed list of them. Therefore, you will be able to give a thought of which of these are unnecessary and try to stop wasting money for them. You will be surprised to find out that you spend money on things/services that you do not use. The first step of the process is to check your subscriptions and cancel services that you do not use.

  1. Save money every month.

Maybe you do not know a person who does not dream for an exotic holiday, right? The obstacle is always money, so if you wish to go on this dream holiday or buy a house, start saving money. The best advice for saving money is to put money apart immediately when you receive your income. You will also need a saving account or you can use the old-fashioned method – a jar. Setting a target for the month is essential in your saving success. The most important thing is to keep this money only for savings and to define ‘a cause’ for them, in this way you will avoid spending them.

  1. Use an app.

There are a lot of free tools and apps for managing money. The advantages of having an app on your phone are countless. Firstly, the app will allow you to consolidate, control and manage your money. Also, the app will save you a lot of time and help you be more efficient.  Keeping track of your finances on your mobile phone will allow you to see the real picture. Besides, you do not need a booklet for all these notes and calculations.