Financial wellbeing tips and support

The topic of financial wellbeing is often brushed over in schools and at home, leaving many of us wondering how to confidently and happily manage our finances in adulthood. And with things like budgeting, saving, and debt to navigate, balancing everything can get tricky, leaving us unsure where to turn.

With this in mind, we’ve pulled together the following guide filled with financial wellbeing advice. We’ll cover everything from saving to managing debt, not forgetting to highlight some handy resources which offer free support too. Ready to kickstart your financial wellbeing journey? Let’s dive into it!

What is financial wellbeing?

Financial wellbeing involves feeling confident, secure, and in control of your finances. It’s all about having a good relationship with money and having the confidence to make informed financial decisions that align with your short-term and long-term goals.

It encompasses everything from saving to budgeting as well as managing debt and planning for the future. Put simply, your financial wellbeing involves your relationship with money and how it impacts your life.

Why is financial wellbeing so important?

Feeling in control of your finances goes hand in hand with less stress and more certainty. Financial wellbeing brings a sense of stability, giving you peace of mind that you’re equipped to handle unexpected situations with confidence.

A healthy relationship with money also allows you to cover your daily expenses – like food, living, and transportation costs – all while planning for what’s ahead.

Financial wellbeing: How to get started

Achieving financial wellbeing is something many people strive for, but it can understandably feel quite daunting if you’re just starting out. While change won’t happen overnight, there are a variety of steps you can take towards improving your financial health.

1. Budgeting

Mastering budgeting is a key strategy for achieving financial fitness. Balancing your monthly income with your expenses can help you gain control, avoid overspending, and start saving for the future.

There are many ways to budget, with one of the most popular being the 50/30/20 budgeting framework. This involves putting 50% of your income towards your needs, 30% towards your wants, and 20% towards your savings.

Of course, everyone’s situation is different, and you can adjust these percentages based on your own needs. We’ve also got a guide filled with effective monthly budgeting tips if you’re looking to go down a different route. This has advice on setting clear goals, being realistic, and staying motivated.

2. Build a dedicated emergency fund

While unexpected expenses can catch us off guard, we can prepare for them by setting up a dedicated emergency fund. Having a safety net to fall back on can make a huge difference, giving you peace of mind that you’re ready for whatever life throws at you.

Ideally, you should aim to save enough to cover your living expenses for around three to six months in an easily accessible account. But don’t worry if this feels out of reach – you can start small, putting away whatever feels manageable each month.

For more savings tips, just dive into our guide on how much you can save in a year. This is filled with small, actionable challenges, such as saving as little as £1 a day.

3. Saving for the future

Remember to keep your longer-term goals in mind too, perhaps setting money aside for home improvements, a holiday or to maximise your pension. Goal setting is a great way to stay motivated and implement healthy habits that will stand you in good stead for the future.

There’s no need to put pressure on yourself to save huge chunks of money, as saving little and often will help you build up a substantial pot.

4. Using credit with care

When used responsibly, credit can be a helpful tool for things like boosting your credit rating. Having said this, when mismanaged, it can cause financial stress and strain.

Understanding how to use credit reliably is an essential part of achieving financial wellbeing, so here are a couple of our top tips:

• Avoid overuse: Use credit sparingly for items and expenses you can afford to pay off. While short-term loans are hugely useful for covering things like unexpected emergencies, they shouldn’t be heavily relied on.

• Make prompt payments: This allows you to protect your credit score and signal that you’re a responsible borrower. We’d recommend setting up reminders or automatic payments to help you stay on top of things.

Seeking support during times of financial difficulty

One of the most important things to remember is that there is always help out there. Facing financial difficulties can be overwhelming to say the least, but you don’t have to navigate things alone.

Whether you’re dealing with mounting debt, large unexpected expenses, or a sudden job loss, seeking support during tough times can help you get back on track. The following services, amongst many, are available free of charge:

• Citizens Advice offers free guidance on a wide range of financial matters including debt, budgeting, benefits, and bill management.

• StepChange is a leading debt charity which offers free, expert advice to those struggling. From budgeting tools to personalised debt management plans, they provide a variety of resources to help you regain control.

• MoneyHelper gives advice on everything from budgeting to saving, as well as guidance on pensions and loans. Services like this can be a huge help to those looking for ways to better manage their money.

Navigating your finances isn’t always plain sailing, but there are a variety of charities, advisors, and online resources that offer tailored advice. And remember, speaking with trusted family members and friends can be a huge help too. Being open and honest gives you the opportunity to share knowledge and support each other.

Moneyboat’s financial wellbeing tips

With the right approach, it’s possible to boost your financial wellbeing and build a healthier relationship with money. So, before we go, here are a few tips for you to take away:

1. Stay organised: Keep all of your important documents – bank statements, payslips, and bills – in one place. Whether it’s a digital file or a physical folder, having these to hand can help you stay on top of everything.

2. Track your progress: Financial wellbeing is a journey, so it’s important to regularly check in on your progress. Carrying out financial health checks can help you assess whether your habits are aligning with your long-term goals.

3. Lean into learning: From budgeting to saving and exploring investment opportunities, there’s always something new to learn. Seeking out new opportunities to develop your knowledge is a great way to build strong financial foundations.
   
   

When it comes to learning, the perfect place to start is the Moneyboat blog! Over there you’ll find additional insights on how to get out of debt and how to navigate defaults. We’ve also got tips on how to teach kids about money which might come in handy. So why not dive in and begin your financial wellbeing journey today?