Money Basics

The Financial Foundation Everyone Should Have

TL;DR

• Money is a tool to reach your personal goals

• Track where it moves, control it and then you can grow it

• Start small to build your confidence and then build your life

• Use the free starter kit to help you get familiar with your money via the button below

*Coming January 2025

3 Core Skills

To set solid financial foundations, you need to develop these three core skills:

• Tracking - so you know where every £ goes

• Discipline - so you can stick to budgets, plans and invest

• Saving - particularly for an emergency fund so you don't get caught out if life throws you an inconvenient curveball

50/30/20 Rule

A well documented financial strategy to help budget how you should allocate your monthly salary:

• 50% = Needs (rent/mortage, bills etc. essential for living)

• 30% = Wants (fun stuff but not essential for living)

• 20 % = Save or Invest (emergency fund or long term plans)

These percentages may need to be altered for your personal circumstances but give some targets to aim for.

Your First £1,000

£1,000 is a nice milestone to hit. Not only does it give you a little breathing room in case a minor emergency happens such as car repair or boiler but it can also give a psychological boost to see 4 figures in the bank account backing you up.

It may be quicker to attain than you may think. For example, if you are able to tuck away £85 per month from today, you will have over £1,000 this time next year.

However, if £1,000 still seems too daunting to begin with, lower the target to something within reach and be disciplined to get there.

Building a suitable emergency fund should be everyone's first port of call and once you have reached that first £1,000, it's time to start building it out to a few months of living costs.

Your Actions

Use the free starter kit to help you work out how much your living costs are and track your progress to building an emergency fund

*Coming January 2025