So bad at managing money, please give me some advice.

...And here is the link for the Statement of Affairs (SOA). Please complete the online form. Then click on the 'format for MSE' button (near the bottom of the form) and then copy & paste the whole lot over into this thread.

https://www.lemonfool.co.uk/financecalculators/soa.php

And welcome to the forum Danielle1988

Danielle1988 wrote: »

So, my situation is not the worst, but it is still causing worry and stress for me.

I am always in my overdraft, by the end of the month I've always reached my 1k limit, so I'm transferring money over from my savings to get by. I have around 4k on a credit card that I'm paying £100 off monthly and I have a no interest deal for around 12 months more.

I have 19k in savings. Now, the obvious here would be to pay off the overdraft, but I don't trust myself that I won't end up in it again and I hate seeing my savings go down. I've been looking at accounts such as Monzo as they seem to get such rave reviews about helping people manage their money, maybe my best option would be to pay my overdraft off next pay day and transfer over to one of these banks?

You're right, the obvious thing to do is to use your savings to pay off the overdraft and the credit card when you get to the end of the 0% offer. Overdrafts can be recalled and if you are thinking of applying for a mortgage in the future it doesn't look good to lenders to be constantly living in your overdraft. £100 a month for 12 months won't see you pay off the £4000 balance but luckily you have the means to rid yourself of this debt when 0% deal ends.

There is no magic solution you simply need to set a realistic budget and stick to it. To quote Mr Micawber, "Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

When budgeting you need to look at the whole year and not just the month. This is so that you can be putting money aside for bills and expenses that might only occur quarterly or annually. Christmas seems to blindside a lot of people every year despite the fact that it is always on 25th December. Insurance is usually less expensive to pay annually rather than monthly so a budget that looks at the whole year can help you plan for this.

There are lots of tools to help you budget. Personally I use YNAB although other budgeting apps are available, some people create their own spreadsheets whilst others prefer using good ol' pen and paper. You just need to find something that works for you.

Budget is the answer, try the envelope method by transferring your remaining income after bills into a monzo account, then with no overdraft facility you have to live on the money available.

Hi Danielle

How do you manage your money at the moment?
We all "manage" our money whether that is well done or badly.

Keeping a spending diary along with listing all your expenditure will help you see where your money is going.

Write down the amounts at least every day, preferably as you make a purchase. In the beginning I even looked at who I was with, what sort of mood I was in, even the weather!

Yes, this does take a bit of time but weigh that against the time you worry and feel stressed about your situation.

You will start to notice patterns of how you spend. For instance, the friend who always wants to meet in an expensive cafe or bar; buying goodies when filling up the car with petrol; rewarding yourself with treats when work is horrible.

Start tomorrow. Don't wait for the end of the month or payday or even in the New Year. Get used to recording your spending.

You say you want to change your relationship with money. Take some baby steps towards taking control.

Good luck
Pauline