Think Money, a financial solutions company, has warned people
to think about the future, especially if they're already struggling financially
today.
The warning follows a report by Lloyds TSB which says many
people's finances aren't in great shape. According to the report, as many as
one in five individuals (19%) spend their entire income on essentials like
their mortgage and utilities - with no money left over for discretionary items.
Moreover, around a quarter of people believe they'll be in a
worse financial situation - with less discretionary income - in six months'
time than they are now.
Think Money says that when millions of people in the UK need
to make every penny count, managing your money well is especially important in
case things did get tougher further down the line. Income rises were
outstripped by rises in the cost of living throughout 2011. If you can't make your
money stretch far enough now, how would you cope with less income?
A budget can identify areas of overspending and help you to
gain a better understanding of where your money goes. However, cutting back
isn't always enough. If you're in debt, it's possible you could lower your monthly payments to an
affordable level with a debt management plan, although you would need to
speak to a debt adviser to see if it's right for you. They may be able to
advise on other methods to reduce your outgoings too, if that's appropriate.
