Five steps you can take to manage money better as top financial regrets revealed
Young adults are fearful about being able to keep a roof over their head while older people are concerned about poverty in retirement.
Caller details her struggles during cost of living crisis
The cost of living crisis has become a mental health crisis with millions worried about how to make ends meet.
Young adults are fearful about being able to keep a roof over their head while older people are concerned about poverty at retirement age.
Personal finance experts insist it does no good to bury your head in the sand, instead taking a series of small steps can create a path to financial and emotional well-being.
Money saving and investing app Moneybox recently quizzed 4,000 adults, with nearly half (47 percent) admitting to having money-based regrets causing them to stress related to finance.
Some 28 percent of those surveyed said stretched finances have caused them stress and 27 percent say this financial stress has already negatively affected their mental health.
The most common financial regrets that people have are:
Not prioritising saving more when younger
Not starting to save for a comfortable retirement earlier in life
Not educating themselves more on financial matters
Not taking time to plan for their future finances and only focusing on short-term needs and wants
Not making or sticking to a budget.
Fourteen percent said their physical well-being has been affected. The Money and Mental Health Policy Institute has shown how money worries can often be a root cause of anxiety and stress, as well as an exacerbator for ongoing mental health issues.
Eighty-six percent of those they spoke to admitted their current financial situation has made their mental health issues worse.
Brian Byrnes, head of personal finance at Moneybox, says: “At one time or another, we have all endured periods when we have been under financial pressure, and when times are tough it can feel overwhelming.
“When managing money concerns, it is important to realise that you are not alone in your worries and that there is more support out there than you may realise.
“While it may be tempting to delay addressing financial worries, in my experience, you could be surprised by how quickly you might start to feel better about your financial situation by committing to take some small positive steps regularly.
“If your financial confidence has been knocked, taking time to explore the options you have available to you, and making a step-by-step plan for the future will give you back a sense of control.
“We all have financial regrets in life, things we wish we had done differently, and opportunities we have missed.
“But taking small, consistent steps with our finances through the good times, and the bad, is the single most important thing you can do to boost your financial confidence and improve your financial situation in the long run.”
Below are five tips for anyone who would like to take greater control of their finances:
Set aside at half an hour each week to work on your personal finances
Sorting out all aspects of our finances takes time and feels overwhelming but over the course of a year, just 30 minutes a week would result in 26 hours dedicated to improving your financial situation and reducing financial stress.
Research what help might be available for you to hit your financial goals
Think about speaking with debt advice helplines like Citizens Advice, learning if there are benefits you are entitled to but are not claiming.
If you at risk of defaulting on a payment, speak to your lenders and explain the situation so they can offer realistic timescales for you to repay any debts.
Map your outgoings and see where your income is actually going
Make a monthly budget that is reviewed regularly. If you find that your spending patterns have changed or your disposable income has increased or decreased, make sure you understand why this might be.
Create a plan to increase your income
Often when budgeting we think only about reducing expenditure and not the other side of the equation.
You could consider upskilling yourself and putting yourself in the best position for a promotion and raise at work or utilising your skills to generate income from a side hustle.
Be kind to yourself and acknowledge that progress takes time
As with any goal, learning how to improve your personal finances requires discipline and the occasional reset.
There will always be unforeseen events that can take us off course but keeping the end goal in mind is the best way to ensure you’re always moving in the right direction.
