Duncan Fortune, Head of Commercial at Tesco Bank, said: “Money plays an important role in our lives, shaping the choices we make and impacting our overall wellbeing. Having a simple budget, a plan to manage debt, or savings goals can help you feel more in control of your finances, as well as more confident and secure about your financial future.”
With Talk Money Week in mind, Duncan shares his top tips for getting consumers on top of their finances:
1. Organise your budget
With the sun setting on summer, it’s a great time to review your spending and re-organise your budgets. If you don’t have one already, think about how to make budget tracking work for you. Do you want to have a weekly limit, or a monthly one? Would you want to allocate a certain amount for different uses, like eating out or shopping? This will help you figure out where your money is going, and whether you need to make any changes to cut costs.
2. Prioritise your debts
Whether you have one outstanding debt or many, it’s important to understand how much you owe and when your repayments are due. This includes any ‘buy now, pay later’ (BNPL) payments, credit cards and loans. Some bills or payments could have higher consequences if not paid on time, so it’s vital you prioritise them accordingly. Otherwise, you could quickly end up owing more than you had initially borrowed, and this could impact any goals or plans you have.
3. Set your savings goals
According to Tesco Bank research, 66% of Brits have earmarked their savings for something specific, such as holidays, property, celebrations, or a new car. Having a dedicated pot for something you have your eye on can help you reach your goals faster. It helps track how far away you are from your target and also ringfences that money so you’re not spending it on anything else. Your savings goals don’t have to be as significant as a house deposit either – it could be for something in the short-term like a new pair of shoes or a big day out.
4. Keep an eye on your spending
While it’s good to treat yourself now and again, impulse spending can easily eat into your budget and get in the way of your longer-term financial goals. With 18% of adults admitting to doom-spending – a trend where people use shopping to alleviate feelings of stress, anxiety or uncertainty – pausing before making a purchase is more important than ever. If you’re tempted to buy something, save a screenshot of it and come back to it in a week or so’s time. If you still feel it’s something you need, you can make the purchase with confidence, knowing it wasn’t a spur-of-the-moment purchase.
5. Don’t be afraid to talk about money
Part of having a good relationship with money is being comfortable having conversations about it. Tesco Bank research found a fifth of Brits (21%) say their friends or family typically trigger conversations around money, prompting them to talk or think about their finances. Whether it’s with your partner, friends or family, openly speaking about money is a great way to seek advice, stay accountable for your spending habits and motivate yourself to put money towards your goals. Most importantly, it shows everyone involved that money matters don’t have to be a taboo subject!
