Five signs your finances need a health check

Managing money often feels difficult and intimidating, and dealing with paperwork is something that’s easy to put off. But often, you’ll see a few red flags warning you that it’s time to give your money some attention, so small problems don’t turn into bigger ones.

1. You’re running out of money before the end of the month

If you check your bank balance and wonder where your money’s gone, or find yourself relying on your overdraft each month, then an alarm should be sounding.

Just a few small purchases here and there, like a takeaway coffee or a new top, can quickly add up, and leave you feeling short at the end of the month.

So go through your recent bank statements and keep a spending diary for a few weeks, so you have a clearer idea of where your money’s going, and where savings could be made.

It’s also worth setting a monthly budget, so you can treat yourself without losing sight of essentials like food and bills.

If you know what’s coming in and going out, you can make sure you’re able to afford little treats, luxuries and experiences that enhance your life.

2. You're using credit or buy now, pay later to make ends meet

Credit cards and buy now, pay later (BNPL) can be useful ways to spread the cost of bigger purchases.

But if you’re using them regularly to pay for essentials like food and household bills, that’s a sign that your budget is under pressure.

If you're borrowing to cover everyday costs, don't be afraid to ask for help. 

We can help you create a household budget, deal with your debts and find out what benefits you can claim.

3. You'd struggle to cover an unexpected bill

Unexpected costs like emergency dental treatment or your boiler breaking down don’t usually come cheap.

So if a financial shock would put you in a state of panic, then it might be worth building a rainy-day fund.

A good goal is to have enough saved to cover around three months of your living costs - things like rent, bills, food and transport - but having even a small amount put aside could make a big difference if you ever need it. 

4. You're using savings to pay for essentials

Savings are there to give you a financial cushion and set you up for the future.

So if you're regularly dipping into them to cover everyday costs and bills, then it’s time to review your financial situation and how you spend your money.

5. Money worries are keeping you awake at night

If you feel stressed or anxious when a bill or letter drops through your letterbox, or can’t sleep through worry, treat those feelings as a call to action.

You shouldn’t have a sense of dread when it comes to managing and engaging with your money, so reach out for help.

Speaking to your partner, your friends and your family can make a huge difference, and organisations like the Samaritans can also offer invaluable support.

And of course, we’re here to offer practical, confidential help to get you back on track.