Welcome to Money Matters: GLAMOUR’s weekly dive into the world of finance. We’re chatting all things personal finance, from contracting rights in the workplace to expert mortgage advice and saving for your first home, to ISAs and dealing with debt, to help empower you to make better choices. Now more than ever, it's important to understand our money, but so many of us feel as if we don't have a handle on it – or worse, feel anxious and scared about money.
So each week, a woman in a unique situation will give us an honest breakdown of her finances, and our expert will give her easy tips on how to tackle it.
To submit your own anonymous money diary and get top expert tips tailored to you, simply submit your entry here. And don’t forget to join GLAMOUR’s Facebook group, Money Matters, for more exclusive finance content.
MY ACCOUNTS
Current account: £474
Savings account: £500
MY INCOMINGS
Annual salary pre-tax: £21,000
Annual salary post-tax: £18,471
Monthly wage pre-tax: £1,750
Monthly wage post-tax: £1,539
Other incoming payments: £0
MY OUTGOINGS
Rent/mortgage: £0
Bills: £120
Splurges: £0
Other: £0
MY MONEY THOUGHTS
My worst money habit: Worrying about it.
My biggest money worry: Not having enough of it.
My financial hopes for the future: Independence.
Let's talk money.
WHAT MONEY EXPERT MAKALA GREEN SAYS:
Makala Green is a multi-award-winning Chartered Financial Adviser at Schroders Personal Wealth and has over 18 years of experience in the financial industry. She understands managing money can be complicated and confusing, which is why she is passionate about making financial planning more accessible for all. She is also the Author of The Money Edit; a no shame no blame guide to taking control of your money.
Separate your personal and family finances
Managing your finances can be overwhelming as a single mum, but it doesn’t have to be. To help you stay on top of your expenses, create a monthly budget that includes all your costs, including your child's expenses, such as back-to-school shopping and field trips; this will help you make smarter financial decisions and find ways to save money. Also, take advantage of budget-friendly family activities so you don't have to break the bank to have fun with your kids. Remember, financial stability is crucial, so take some time to review your expenses and opt for separate accounts to manage your money suitably. You got this!
Balance your budget
Creating a budget for monthly expenses is vital, particularly for single mothers solely responsible for their finances. First, categorise your monthly expenses into rent or mortgage, utilities, groceries, and minimum debt payments. Then, explore what you have left over to cover enjoyable expenses such as eating out and entertainment. When we carefully examine our daily expenses and review our spending habits, we can determine how to allocate our money wisely. Lastly, assign a specific amount for each category; for example, you may allocate more funds to essentials and reduce non-essential expenses like eating out to give room for saving. The key is to strictly stick to the set amount allocated for each category. Take time to regularly review your budget and make changes accordingly. Trust me, your future self will thank you!
Automating your finances
Automating your finances can simplify your life and save you time and effort. It helps you avoid financial mistakes such as late payments and unnecessary charges and ensures you stay on top of your finances. When you have a lot on your plate, it's easy to forget to set aside enough money for bills. Instead set up standing orders or direct debits to deal with all your financial commitments and to stay on track. It's also a good idea to allocate a certain amount of your budget to a savings account for unexpected expenses and future financial goals. Automation can also help you monitor all your financial transactions automatically, making it easier to track your spending.
Take advantage of government support
In the recent budget, the government announced several benefits for parents and carers in England, so it's important to know what you're entitled to. Starting from April 2024, child benefits will increase to £25.60 per week for the first child and £16.95 per week for each additional child. Additionally, from April 2024, all eligible working parents of two-year-olds can access funding for 15 hours per week of childcare. Starting September 2024, eligible working parents can also access funding for 15 hours per week of education and care for their children aged nine months to three years old, increasing to 30 hours from September 2025 to encourage more women to return to work.
Plan your future finances
Managing expenses on a single income can be challenging, but with the right budgeting strategies, you can stay on top of your finances and achieve your financial goals. The foundation of financial planning is a financial cushion to protect your family from unexpected expenses, such as medical bills, car repairs, or home maintenance. Having savings can help you handle these costs without any stress. But it's not just about saving for emergencies. It would help to plan for future expenses, such as higher education. Even if you can only spare a small amount each month, creating a savings plan and sticking to it can make a huge difference in the long run. It's important to prioritise bigger goals, such as planning for retirement, family protection, buying a home, or starting a business. You can achieve anything with the right mindset and a solid financial plan.
Let's talk about money.
