At Severn Angels Housing & Support (SAHS), we place a significant emphasis on the topic of budgeting and money management. We understand that financial stability is not just a cornerstone of independence, but also a crucial element of overall well-being. That’s why we integrate financial literacy and empowerment into our core services.
Why It Matters at SAHS:
- Empowering Independence:
We believe that empowering our residents with financial knowledge and skills is key to fostering independence. Through budgeting and money management training, our residents can take control of their finances, making informed decisions that affect their lives.
- Customised Support and Education:
At SAHS, we aim to provide residents with the tools and knowledge they need to build a stable financial future. This includes understanding how to save, budget, and manage debts effectively.
- Creating a Supportive Environment:
We foster a supportive environment where residents can openly discuss financial challenges and seek guidance. Whether it’s one-on-one empowerment meeting or group workshops, we ensure that our residents have access to the resources they need.
The Basics of Budgeting:
- Understand Your Income and Expenses:
Start by tracking your monthly income, including all sources like salary, investments, and any side hustles.
List your expenses, categorizing them into essentials (rent, utilities, food) and non-essentials (entertainment, eating out).
- Set Realistic Goals:
Define clear, achievable financial goals. Whether it’s saving for a vacation, paying off debt, or building an emergency fund, setting goals gives your budget a purpose.
- Create Your Budget:
Use a budgeting method that suits you, like the 50/30/20 rule – 50% on needs, 30% on wants, and 20% on savings.
There are many tools available, from simple spreadsheet templates to sophisticated budgeting apps.
Effective Money Management Techniques:
- Prioritize Saving:
Treat savings as a non-negotiable expense. Automate transfers to your savings account right after you receive your income.
- Cut Unnecessary Expenses:
Regularly review your spending. Identify areas where you can cut back, like subscription services you don’t use often.
- Manage Debt Wisely:
If you have debt, prioritize paying it off. Focus on high-interest debts first while making minimum payments on others.
- Prepare for Emergencies:
Aim to build an emergency fund that can cover 3-6 months of living expenses.
- Invest in Your Future:
Consider long-term investments like retirement funds. It’s never too early or too late to start saving for retirement. Utilise the Help to Save Government Scheme if you are eligible Link: https://www.gov.uk/get-help-savings-low-income#:~:text=Help%20to%20Save%20is%20a,available%20in%20Welsh%20(Cymraeg).
- Monitor and Adjust:
Regularly check your budget and adjust as needed. Life changes, and so will your financial situation.
- Keep Learning:
Stay informed about financial planning and investment strategies. Knowledge is power when it comes to money management.
- Seek Professional Advice:
Don’t hesitate to consult with a financial advisor, especially for significant decisions like investments or buying a home.
Budgeting and money management aren’t just about restricting your spending – they’re about making your money work effectively for you. By taking control of your finances, you can alleviate stress, achieve your goals, and secure a comfortable future. Start small, stay consistent, and watch your financial health transform.
