1. Start with the Big Picture
- Clarify your goals: Think about what you want in 5, 10, 20 years—buying a house, retiring comfortably, traveling, etc. You don’t need all the answers now, but having rough goals helps. It might help to visualise these. I have a Miro board with things I wanted to achieve from 2020 and as these have happened I have moved them to the edges.
- Prioritise: Not all goals are equal. Identify which ones matter most so you can allocate your resources accordingly.
2. Break It Down
- Long-term can feel too long. Break goals into smaller, manageable steps.
- Use timeframes: Short-term (0–2 years), medium-term (3–5 years), long-term (5+ years).
3. Track Your Income and Spending
- Awareness is key. Know what’s coming in and going out.
- Look for spending leaks—little things that add up. I have a hot chocolate habit which I need to keep tabs on.
- Make sure that you are planning for the infrequent expenses as well as the monthly ones e.g. car tax, insurance, MOT, servicing and maintenance.
- Use budgeting tools/apps or just a simple spreadsheet. I like YNAB – You Need A Budget. It has a method which I think makes sense.
- Give Every Dollar (Pound) a Job – Instead of budgeting money that you don’t have yet, YNAB works on the basis of budgeting all of the money you have at the moment, not money you expect to come in. If you assign all of your available money to your categories as soon as you have it, you can then decide if you can afford to spend something based on the reality of your needs not a bank balance which is not the full picture or money which you don’t have yet.
4. Automate Where Possible
- Automate bill payments so you don’t have to think about them.
5. Build up an Emergency Fund
- Aim for 3–6 months of essential expenses including the ones which are not frequent.
- This helps you avoid debt when unexpected costs hit.
If you would like some tools to help you with this please add your details to this waitlist and as soon as they are ready I will send them over.
