CREATING MONEY HABITS TO LAST A LIFE TIME TIP:

Getting into good habits is the best way to ensure you have the healthiest financial life.

CONTROL

Having a budget and knowing where you stand is the only way to keep on track.

ESSENTIALS

As soon as your wages hit your bank account, pay out your regular essential bills such as rent or your mortgage, council tax and energy bills. You can set up direct debits or standing orders.

TIP: Setting up direct debits can save money as some firms offer discounts – and you can spread bills such as insurances.

SAVINGS

Set up a standing order into a savings account that goes out just as you get paid.

Focus on getting an emergency fund saved up – typically three to six months’ worth of your bills, so you have this to fall back on.

If you dip in, keep topping it back up. Once you have this saved up, then you can start putting money away towards other goals such as a car.

CREDIT/DEBT

We all need to borrow at some stage, a mortgage for a home, a loan for a car. But ensure you don’t take on too much debt.

Borrowing can be expensive, especially using credit cards if you don’t repay the balance in full each month. Research to find the best product.

Every pound you borrow means you have to pay that back plus interest. Saving up will be a lot cheaper.

TWO ACCOUNTS

It can be useful to set up two bank accounts – one as your main account to have income paid into and for everyday money management, and another for bills.

That way you will never miss a payment and the money will be ready.

Set up a standing order from your everyday account to cover your regular bills.

Round it up so you can build up a slush fund in that account and to cover changes to bills.

LOYALTY

There are no rewards for loyalty. Those who stick with their financial providers year after year for things such as insurance and energy end up paying the most.

Instead of simply allowing products to auto renew, check to see if there is a better deal.