Smart Steps to Take Now for a Brighter Financial Future

The future is uncertain, especially at the moment, but one thing remains unchanged.

Taking steps to secure your finances now will benefit you in years to come. If you’re looking for ways to reduce spending, save more money, and lay down firm foundations for later life, you’ve come to the right place.

Here are some simple steps you can take now to reap the rewards in the future. 

Analyzing Your Spending Habits

If you were asked about your spending habits, what would you say? Are you the kind of person who splashes out the moment their paycheck lands, or are you more cautious with your money?

If you tend to spend too much and then leave yourself short at the end of the month, changing the way you manage your money can help. Living beyond your means can spell trouble, especially if you borrow money or use a credit card to make ends meet. Short-term loans and credit cards tend to have high-interest rates, and if you’re not careful, debts can add up very quickly. 

If you are keen to take control of your spending, but you find it difficult to resist the urge to go shopping or to treat your kids, friends, or family members, try and introduce a weekly cap and save money on payday.

If you can do this, you’ll boost your savings pot, and you’ll lower the risk of overspending during the rest of the month. It’s also crucial to keep an eye on your account balances, as it can be tricky to keep track of spending.

When you have direct debits, you use cards to pay online, or you use contactless technology when you shop, it’s easy to forget about transactions and miss them off your budget. Use Internet banking and apps to monitor your accounts closely. 


Budgeting is fundamental to effective money management, and it can make a real difference to your finances. With a budget, you can track where your money goes, set viable spending limits for the month ahead and identify areas where you’re overspending, or you could reduce bills.

If you’re spending far more than you need to at the supermarket, or you haven’t canceled a gym membership despite not going for months, use your budget to claw back cash and boost your balance.

You can set a new budget for groceries, cancel subscriptions, and memberships you don’t use or need anymore and transfer a lump sum to your savings account if you have the means to do so. If you don’t already budget, you can use a notepad, a spreadsheet, or an app to draw up your first edition. 

Controlling Debts

Most adults have debts, but being in debt is not always a cause for concern. There are different levels of debt, and many people are in control of their outgoings. If you’re paying back a mortgage or a loan, and you’re meeting repayments without any trouble, you don’t need to panic about being in debt. Problems begin when you can’t pay bills and cover payments.

At this point, you might resort to using credit cards or taking out additional loans. Payday loans usually have high-interest rates, and relying on credit cards can cause debts to spiral rapidly. If you’ve reached a point where you’re struggling to pay your bills, your debts are increasing day by day, and you’re worried about missing repayments, don’t hesitate to seek advice.

There are solutions out there, and debt advisers can help you clear priority debts and improve your financial situation. It can often be tough and distressing to deal with debts, and reaching out can reduce stress and anxiety levels. 

Planning for the Future

Nobody knows what is going to happen in the future, but most of us are hoping to work for a period before taking a well-earned break and enjoying a comfortable, fulfilling retirement. The days of not working may seem a long way off, but preparing in advance is always beneficial.

If you’re employed, you might already be paying into a retirement fund to which your employer is also contributing, but seeking advice about wealth management and retirement planning is also a useful exercise.

You might want to add to your pot to enable you to enjoy more financial freedom, or you may be thinking about investing in trying and growing your money. Speaking to an adviser can provide you with information about the options that are open to you and help you decide which course of action will be most suitable based on your circumstances. 

Investing money can be lucrative, but there are always risks. If you’re thinking about putting your money into stocks and shares, real estate, cryptocurrency, or an up and coming business venture, for example, do your research first. Weigh up the pros and cons, set a spending limit, and look for ways to maximize the chances of success. For real estate investment, it’s beneficial to explore locations, to analyze the local market and to think carefully about the type of property you want to buy and the kind of buyer or tenant you’re hoping to attract. Look for the potential to add value and keep a close eye on costs. 

Protecting Yourself

If there is one lesson we can learn from the Covid-19 pandemic, it’s that you never know what is going to happen. One day, you could be healthy, happy, and financially secure, the next you could be facing unemployment, battling poor health, or trying to find a way to pay an unexpected bill. It pays to protect yourself and to be prepared for all eventualities.

Investing in insurance is an excellent way to secure your finances and lower the risk of having to fork out for auto and home repairs, medical and veterinary bills, and loss of income if you’re self-employed. Compare different policies and providers if your current plans are due for renewal and take a few minutes to look for the best deals if you’re searching for a new policy. 

Another effective way to protect yourself is by putting money aside and building an emergency fund. If you do lose income, or you have a mammoth bill to pay, you can dip into your SOS fund. This should help to reduce stress and help you stay debt-free. 

The Bottom Line

Most of us worry about money, but making simple changes to the way we spend and save can make a massive difference. If you’re anxious about your financial situation, or you’re eager to start working towards a brighter future, take steps now.

Analyze your spending habits, draw up a monthly budget, and take control of debt. Think about putting money aside for your retirement, investigate investment options, and try and protect and secure your finances. 

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Michael launched Your Money Geek to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.