Practical money moves to help you move on

Big life changes often bring big questions, especially the one that can keep us up at night: “Can I actually afford to do this?”

Whether you're eyeing a new job, moving cities or stepping away from employment to start your own business, financial confidence can make the difference between feeling empowered or overwhelmed.

And with the rising cost of living putting strain on many people’s budgets, taking a leap, personal or professional, can feel even more daunting.

That’s why we spoke to Katie Vye, head of workplace financial education provider Better With Money, to uncover the simple, practical steps anyone can take to feel more financially secure during what she calls ‘lifequakes’ - the big moments that shake up your routine and your income.

As Katie says: “These life events, good or bad, have a tendency to disrupt the financial landscape around you. Financial education is critical in helping people understand their options and reduce the anxiety that comes with change.”

1. Start by going back to basics: reset your budget

When your circumstances change, your first step should be understanding the real state of your money, on paper and not in your head.

Katie calls this ‘going back to basics’, and says many people are surprised by what they discover:

“For most people, doing a budget is actually the first time they’ve ever sat down to understand their essential spend, their nice-to-haves, and their debt or liabilities.”

Break your spending into three buckets:

• essential spend: rent/mortgage, food, bills, anything that keeps you safe, warm and secure
• non-essentials: subscriptions, meals out, hobbies
• debts and commitments: loans, credit cards, finance agreements

A clearer budget gives you control. It shows what can be cut, what needs to stay and what income level you actually need, not just the one you’re used to.

2. Don’t assume a life change will increase your income

It’s easy to assume a new job, new location or new venture will lead to higher earnings. But Katie warns against that assumption:

“There’s often an assumption that a change of job means a higher salary. What we typically see is that it can actually have a detriment for a period of time.”

Write down what the financial impact could be, both the best-case and the worst-case.

Being realistic rather than optimistic helps you make informed decisions and can help reduce stress later.

3. Build (or start) an emergency fund

If your income might fluctuate, an emergency fund becomes your safety net. Many people think they need to save three to six months’ salary, but Katie says:

“There’s a misconception that it’s three to six months of your actual monthly salary. It’s three to six months of your essential spend.”

This is good news if money already feels tight, as your essential costs are typically far lower.

Start small and stay consistent. Even a modest buffer can make transitions feel less daunting.

4. Explore simple ways to boost your income

If you need short-term financial breathing room, there are more options than you might think.

As Katie highlights: 

• Rent a room scheme – you can earn up to £7,000 per year tax-free by renting out a spare room.
• Marketplace selling – decluttering through the likes of Vinted, Facebook Marketplace or eBay.
• Side hustles – but with two important checks:
1. make sure it’s allowed by your employer, and
2. understand the tax implications, as multiple income streams can push you into a higher tax bracket

“People need to be very mindful of the tax position. It doesn’t matter how many sources the income comes from, it can quickly add up and push them into a higher tax threshold," says Katie. 

5. Talk openly about money, it actually helps

Money conversations can feel awkward, but they’re slowly becoming more normal. Katie encourages using everyday moments to start small:

“It’s about finding day-to-day opportunities to bring up the subject, sharing a cost saving, something you’ve learned, or your own experiences. That helps destigmatise the conversation.”

Talking about money can:

• help you learn
• help others feel less alone
• help everyone make more informed decisions

And it pays to start young. Discussing pocket money and budgeting with children helps form healthy money habits early on.

Katie is a strong advocate for financial education in schools:

“People start to form their money mindset as early as seven. There’s a clear need for that conversation to start early and continue into adulthood.”

6. Look at the entire reward package, not just the salary

When considering a new job, it’s tempting to focus on the basic salary alone. But Katie warns that this can be misleading:

“There’s a real danger in people looking at basic salary in isolation. It’s about the total reward package.”

When assessing a new role, consider:

• pension contribution differences
• healthcare benefits
• share schemes
• training and development
• hybrid or home-working and the cost of commuting if that changes
• annual leave
• family benefits

Katie recalls one employee who was thrilled about a higher salary, until she pointed out the extra commuting costs and loss of remote-working days. Suddenly the ‘pay rise’ wasn’t such of a pay rise after all.

7. Know where to turn for help

Better With Money was founded in 2016, to fill a gap in unbiased financial guidance. They don’t sell products or offer financial advice, instead they aim to be, in Katie’s words:

“That expert financial friend.”

Through webinars, one-to-ones, vlogs and signposting to trusted resources, they help employees feel informed, confident and less stressed about money.