Anne Boden’s Top 5 Money Tips

‘I’M SO GOOD WITH MONEY, I STARTED A BANK!’

1 Prioritise financial health

Just like getting into shape, living a healthy financial life has benefits. It includes everything from understanding your spending habits, to making positive changes and planning for the future. I firmly believe that, in today’s uncertain world, everyone has the power to give themselves financial certainty.

2 Be ruthless

If you are serious about your financial health, you need to be honest; identify outgoings and reduce expensive debt. One quick and easy first step is to rationalise your bank accounts and consolidate your money in one place. This will make it easier to assess your financial health. This is simple, thanks to the Current Account Switch Service (CASS), which does all the admin for you within seven working days.

3 Know your bank balance

To get on top of your finances you need to know exactly what you have in your account. Mobile banking apps such as Starling give you an instant breakdown of what’s coming in, where it is going and how much is owed.

4 Get an overview

If you are really struggling to keep a lid on spending, try one of the dashboard-style apps such as Money Dashboard, Yolt or Squirrel to view all your accounts in one place. The helpful graphics on these apps give you a visual snapshot of your money. You can even play around with the figures, so you can see how much you’d save per year if you gave up your daily latte, or made a packed lunch.

5 Adopt the savings habit

Experts recommend you save between 5% and 20% of your income every month. If this isn’t achievable, just start with what you can afford, but set yourself a target of a three-month emergency fund, so if your financial circumstances change, you don’t have immediate worries about paying your mortgage or bills.