How do you rate your money skills? Do you watch every penny, police your bank statements and count the cost of every night out – or do you tend to turn a blind eye to your bank account and go for broke every month?
Research carried out for budgeting account provider thinkmoney, who also provided this article, reveals some interesting trends.
How good is the average person with cash?
A respectable 64% (two thirds) of people reckon they’re alright with their day-to-day spending, according to this research.
Most people say they keep on top of their cash and do their best to make sure every penny counts.
But 16% confess to being ‘rubbish with money’, have no idea of their outgoings and are totally chaotic when it comes to their cash.
The financial geniuses
Conversely, almost the same percentage (14%) regard themselves as financial whizzes who not only know exactly where every penny is going, but also have a budget and a plan – and stick to it.
Around 6% say they don’t even bother to think about it all. After all, they say, life’s too short to worry about cash when it’s there to be lived.
The difference in areas
We need to look to Northern Ireland to find the largest percentage of respondents who said they’re rubbish with their money – a staggering 35% didn’t rate themselves as competent when it comes to cash. In the East of England, the percentage falls to 11%, showing that far fewer are quite so hard on themselves.
The importance of budgeting
It’s not always the simplest task – both practically and psychologically – to keep a tight hold on your purse strings. However, getting some advice and help can go a long way to helping you get back in control and on top of your outgoings.
This can help you improve your quality of life and make it easier to stay on top of your finances. Ian Williams, director of communications at thinkmoney, said: “We all lead busy lives and it can be hard to budget successfully. Sometimes, people need a little extra help to keep on top of their outgoings.”
Making some small changes to your daily spending habits can go a long way. For example, if you’re used to spending whenever and wherever the mood takes you, you could make a big difference to your finances by taking the time to sit down and work out exactly how much you can afford to spend – without using the cash you really need to be keeping for life’s essentials.