Getting into good financial habits is sensible, but sometimes making those strategic money decisions can be overwhelming. Here’s our five-step guide to a healthy financial wellbeing.

  1. Budget Effectively
    If you set yourself an effective budget you can control your spending and focus on putting money aside to ensure you don’t spend more money than you earn. There are plenty of ‘free’ budget templates available online. Head to Martin Lewis’ Money Saving Expert website where he provides a step-by-step approach to understanding your incomings and outgoings! And, The Money Charity’s website is another useful source of information their budget builder is available here.
  2. Build an emergency fund
    Building a financial safety net is a practical way to guard against those unexpected expenses that can suddenly appear form nowhere – car repairs, boiler replacement etc. Start by setting a goal to save three to six months’ worth of living expenses. If that amount seems daunting, begin with a smaller goal, such as £1,000, and gradually increase over time. Setting aside a portion of your income each month, even if it’s a small amount, can make all the difference when those unexpected bills come in.

  3. Regularly review financial goals and progress
    If you set yourself a financial goal it’s important to regularly review where you are at. It will keep you motivated and help provide direction to your financial decisions. The goals could be anything from saving for a house deposit, investing in your retirement or saving for a holiday. Keeping a track of where you are against your target will ensure that the goals continue to align with your financial priorities and will help reinforce positive financial habits.

  4. Investing in your future
    Whether it’s a pension scheme, stocks, bonds, or other investment opportunities, investing can provide you with additional income and help protect you against inflation. Before you make any commitments ensure you educate yourself on the different types of opportunities available and consider the risks and potential returns.  It’s useful to discuss options with a Financial Adviser, who can help create an investment strategy that works for you and suits your risk tolerance and financial aims.

  5. Financial Education
    Staying informed about personal finance topics is key to maintaining financial health. Educate yourself on financial planning, investments, taxes, and any changes in the financial landscape that could affect you. We’ve already mentioned The Money Saving Expert and The Money Charity websites above, but if listening is more your thing then look up the BBC’s ‘Money Box’ and ‘Money 101’ podcasts or tune into CKLG’s podcasts available on our website here.

And finally, the team at CKLG are always on hand to help support you and your business with making practical financial decisions. Give the team a call on 01223 810100 if you’d like support with maintaining your financial health.