But, by breaking it down into small, easy to achieve tasks, you can make sure that you develop a healthy relationship with money. We’re here to help you along the way, so here are our top tips: 

Don’t hide from your finances 

It’s important to acknowledge your finances and look at what you need to sort out. If you take a chance to review your situation, you can make sure that everything is in order and that it’s working for you. And if it’s not working, you can start to think of solutions. You might feel a little scared to start, but it’s easier to spot and fix problems as early as possible rather than waiting until further down the line.

Consider your history 

Take a moment to reflect on your history with your finances. Is there a reason that you are not confident? Have you had negative experiences in the past? What was your parents’ relationship with money like? These questions can all help you to work out the best ways for you to move forward and develop a healthy relationship with money.

Set your goals 

Now that everything is in order, let’s look forward. Do you have an idea for what you want your future to look like? Are there any goals you’d like to meet? Maybe you would like to save more into your pension, buy a house or go on a once in a lifetime holiday. Figure out what you’d like to achieve and then make sure those goals are SMART. A SMART goal is one that is specific, measurable, achievable, realistic and timed. By considering a SMART framework, you can increase your chances of success.

Budget, budget, budget 

We’re a bit of a broken record when it comes to budgeting, but it really does help you manage your finances. The key to a budget is knowing exactly how much is coming in and how much is going out – that way you know where everything is, and you can easily spot when something is amiss. Think of yourself as having a row of pots. One for savings, one for bills, one for investments etc. 

Don’t think of a budget as a constraint. Yes, you are trying to save money to meet your goals but that shouldn’t mean that you can’t enjoy yourself now too. Make sure to factor in things like going out and your hobbies but try to remain sensible so that you don’t go overboard.

Try to create beneficial habits 

Once you know how much you want to put away each month, it can be quite easy to form some habits. For example, make sure you set up automated payments into your various pots, that way it’s taken care of, and you don’t need to worry about it. Consider keeping your ‘fun’ money separate so that you don’t risk spending money that you shouldn’t. Most importantly, take care of necessities first, then have fun. 

Savings 

If you don’t have any savings, start by setting yourself a manageable goal. For some that could be a large amount, for others it may be relatively small. But don’t worry about what others are doing, focus on what is best for you. 

Over time, do your best to increase the contributions you make to your savings. Ideally, you want a savings pot of around 3-6 months of expenditures. That way if something happens out of the blue, e.g. a pipe bursts or the car breaks down, you should be able to sort it out without taking too much of a financial hit. 

Once you have your buffer, keep adding extra to your savings as and when you can. Even small amounts add up and help towards your goals for the future. 

Investments 

Once you have created your emergency savings, consider placing any surplus into some form of investment. You can start very simply with an ISA or if you have a pension, take a look at how to increase your contributions. If you have all your short-term needs covered, think again about the future and consider your long-term needs. 

These tips, alongside tailored advice from a professional adviser, can help to make sure that you develop a healthy relationship with money. If you are based in Edinburgh, you could consider Edinburgh Council’s ‘Multiply’ financial literacy course (click here). 

If you have any questions or concerns regarding your finances or the tips in this blog, please get in touch and let us help you make your money change your world.