Today is National Stress Awareness Day, which raises awareness of the impact of stress. People’s spending habits can often become a big source of worry. If you’re concerned that you’re spending too much money, we have created a quiz to help you consider your habits.
1. How quickly do you spend your wages?
b) Within 2 weeks; I often run out of money before month end
c) I can usually make my wages cover the entire month
d) I always save some money to cover any extra costs
2. What do you spend money on the most each year?
b) Household bills
3. How do you pay your bills?
a) When I can afford to pay
b) As late as possible
c) By standing order or direct debit
d) Most bills are paid annually
4. Do you have a monthly budget?
b) I struggle to budget my spending
c) Yes, I have a monthly budget
d) I don’t need a monthly budget
5. Do you have a savings account?
b) Yes, but only a small amount of savings
c) Yes, I have just enough for an emergency
d) Yes, I also have an ISA
6. Do you have any investments?
a) I can’t afford to invest
b) I don’t think I have enough to invest
c) I would like to invest but I am unsure how
d) I have one or more investments
7. Do you have a pension?
a) Only the state pension
b) I have one through a workplace auto-enrolment scheme
c) I pay into a private or personal pension each month
d) I have more than one type of pension, such as a SIPP or SSAS
If you answered mostly A then you’re likely to struggle with your spending. You may benefit from some forward planning when it comes to budgeting. Start by listing every household bill. Add up these costs to see your total monthly outgoings, and then allocate a sum each week for food and fuel. This process will help you create a basic monthly budget.
If you answered mostly B then you have a fair idea of your daily spend, but you might find it useful to create a monthly budget (see above). This will help you to plan ahead and prepare for any big life events. Try to use standing orders and direct debits to pay some bills. If you can pay one or more bills annually, this will be cheaper and will help you save money.
If you answered mostly C then you’re likely to be good at planning your monthly spend, although it’s never been a big concern. However, some of you may be under pressure to tighten your spending, due to the cost-of-living crisis. Economic pressures, such as rising interest rates affecting more middle-earners’ mortgage payments, are on the increase.
If you answered mostly D then unless you have financial freedom, you’re likely to have full control over your monthly spend and you know how to plan ahead. You are also likely to have different types of savings, pensions, and possibly an investment portfolio too. However, despite your level of affluence, try not to become complacent – always check your spending.
Financial Planners – Nottingham and Lincoln
Whether you’re a compulsive spender or fully in control of your money, a little financial planning always goes a long way. The majority of successful and wealthy people take advice from professional financial firms. Making your money work harder for you is the key to achieving a comfortable or luxurious lifestyle, future and even financial freedom.
At Balance: Wealth Planning, we have a team of experienced and qualified financial planners at our head office in Nottingham and our new office in Lincoln. We can help you create a financial plan that reflects your aims and aspirations. Our team will also help you with cash-flow planning. Using sophisticated software, we will provide you with a Lifetime Wealth Forecast to help you with your financial decision making.
Do you have an up-to-date financial plan? Get in touch to speak to our financial planning team.