Planning out your finances either individually or as a family is essential, but that doesn’t mean that it’s easy. Nowadays, financial planning isn’t necessarily taught at schools, and teaching yourself after you receive your first payslip isn’t straightforward, especially as it’s likely that the money will be burning a hole in your pocket. However, although you may face difficulties in planning out your finances, they’re not insurmountable. Here, we look at some of the difficulties faced and suggest ways you can overcome them.
Struggling to Prioritise
Sometimes, when you’re looking to save and invest, the money that you want to have and the money that you actually have don’t add up. Firstly, it’s important that you understand that this isn’t a situation that’s unique to just you, and it’s actually very common, so don’t panic. The trick is to prioritise.
If you take the time to prioritise, you’ll be able to budget far more strategically, and you’ll never feel too pushed to meet savings targets.
The best way to do this is to sit down and be realistic. Ask yourself: “If I could only have one saving objective, what would it be?”
By giving yourself only one objective, you can tailor everything to that end. Crucially, you can set yourself an end goal, too. This will help give you the determination you need to save. So prioritise one goal, and stick to it rigidly. By prioritising one goal, you’ll reach it far quicker, and the process will seem more manageable.
Being Overwhelmed By Debt
Debt is a main barrier to saving and budgeting. At times, it can feel like a weighted rope around you, dragging you down.
As such, if you have debt, the best advice is to clear it as a priority. If you have debt from different sources, the best thing to do is consolidate it into one monthly payment.
This should be the thing you prioritise paying off at the start of the month, too, as missing payments will be detrimental. If you’re struggling, Citizens Advice can help.
Difficulty Finding Help
As we say, Citizens Advice is a great resource if you’re struggling alone, and the government also has a variety of support mechanisms to help you budget.
In addition, if you have a specific reason to save, such as an inheritance, a pension, or even a long-term gift, then you can also consult a financial planning service.
A range of different sources are on hand to help you, so if you’re facing difficulty, don’t face it alone and ask the experts.