Money Money Money (must be funny!)

Hmmmm, I really should practise what I preach!

The very first tip here is something I struggle with continuously ... see my Learning Curve blog!


Ten Tips for Managing Money

1. No Time Like the Present!

Use your time wisely – it doesn’t take long to assess and gain (maintain) control of your finances It’s much easier to be an ostrich and avoid dealing with things, but they soon grow into much longer, more demanding tasks.

Set aside a morning or afternoon to draw up a proper plan, and then allow half an hour every week for ongoing management.

The passage of time – time offers a new perspective. Big problems become much smaller in the grand scheme of things.

Read, action and file financial paperwork every day – a few minutes will save hours of frustration trying to find paperwork later, and also prevents feeling so overwhelmed by something that you can no longer face it.


2. Stay in Touch!

Handle your money in person – avoid any kind of technological payment, and stick to cash as much as possible.

Get touchy-feely with your money, and you will appreciate it more. Withdraw a lump sum of cash at the beginning of the week and make it last.

Control your spending – it is easy to underestimate your spending. Make sure you have a realistic picture, by keeping a record – the longer the period covered, the better the picture you will have.

Suze Orman suggests that ‘how you actually keep your money, is where respect for it starts.’ Keep your purse/wallet tidy, with notes straight, the same way round and organised into different denominations.


3. Weed your Garden!

Tend your financial garden, removing all weeds of past mistakes and future fears.

Suzanne Olson believes that our relationship with money is founded on our earliest memories of it, and she offers interesting advice to help you face up to and overcome financial difficulties.

Learn from mistakes, rather than hide from them – weeds will soon overtake your garden if you ignore them.

Face the fear – understand your fears and take action to address them.


4. Value Evaluation!

Things only run smoothly in life if they are based on your core values.

Assess your personal values and integrate them into your financial life.

Value your money – don’t throw it away! Throwing away unread magazines, rarely worn clothes or shoes, unfinished toiletries, or food left to go off, is like throwing your money in the bin.

Distinguish wealth from riches. Never allow money to be the ‘be all and end all’ of life – learn to appreciate the important, priceless things in life.


5. The Budget Blues!

Keep it realistic – the best advice when it comes to budgeting is to be brutally honest with yourself.

Record your spending in detail and try and track it over a period (3-12 months) Remember to allow for ‘hidden’ spending when you draw up a budget.

Take control – when you blow your budget, admit it! Review the situation as soon as possible, make amendments and move forwards.

Freedom is a state of mind. Things change – such is life! Stay positive and believe that everything happens for a reason.


6. Think Small!

The mind is a powerful resource! Use it to your advantage in your financial life.

If you think you have less to spend, you will undoubtedly spend less. Here again, withdrawing a set amount of cash at the beginning of the week will help.

Appreciate the little things in life. Exchange dîner á deux for a bag of chips on a bench overlooking the sea. Receiving (or making) a hand-made gift cuts down on the costs and ups the feelgood factor. Always go for quality over quantity – a small bag of Thorntons is infinitely better than a big box of cheap chocs!

Pennies make pounds! Think carefully about small expenses – they soon add up. This works equally in reverse – save all your loose change in a bottle or jar (see Tip 9.)


7. Take Aim Carefully!

Think seriously, taking your values into consideration, before setting yourself goals.

Be adventurous. Write them down, using positive language, and set a date by which you want to achieve them.

Focus on one main goal and evaluate your progress regularly. Stay positive, don’t let any setbacks put you off.

Set SMART goals. (More about this later!)



8. Wolves At the Door!

It is probably impossible to finish University without having acquired any debt, but do your best to keep it under control, so you can start your working life in the best financial position possible.

Maintain control of your credit – unless strictly controlled, credit soon morphs into debt. Avoid credit cards if possible, otherwise research to get the best deal, try and pay the balance every month – use them as a short-term rather than a long-term loan.

If you get out of depth, ask for help – earlier rather than later. Debt mounts up quickly, never sorts itself out, and costs more as time passes. Deal with it before it becomes a problem.

Bin your pride – search the Funderfinder database for help from charitable sources, rather than borrowing more money.


9. Rainy Days!

Whether saving pennies for some spare cash at the end of the week/month/semester, or saving pounds in an account for a large expense (holiday, car, electric guitar …) remember that regular payments are the key to success.

Collect spare change - on a daily or weekly basis, empty your pockets into a jar, tin or bottle, and it will soon build up into something substantial. If you share your home, collect coins together and in just a few weeks you will be able to buy something for the home, put some money towards a bill or treat yourselves to a takeaway and DVD.

Research savings accounts thoroughly, and check out options such as ISAs. Be disciplined about saving, make regular payments into your account and avoid dipping into savings.

If you find yourself with some extra money that you want to invest, research your options thoroughly and seek professional advice.


10. Protect Yourself!

Keep yourself safe from financial pitfalls.

For a list of simple steps to avoid falling victim to the rapidly growing crime of identity theft, see the excellent website: Ihatefinancialplanning.com

Identity theft is a far-reaching, destructive crime with traumatic, disastrous circumstances, but it is easy to avoid. One of the simplest steps you can take, is to opt out of junk mail. This is not only easy to do, but saves natural resources and provides freedom from the frustration of piles of unwanted rubbish.

It is always a good idea to have some basic insurance, covering your belongings, your home (depending on your situation) and yourself, particularly when travelling or if a participant in dangerous activities.