1 – Splitting the personal from the business

Last Updated on 19 April 2023

With prices and inflation stubbornly high it’s more important than ever to keep an eye on what you’re spending.

Calculate what monthly income gives you your preferred lifestyle. Use that as a target for earnings.

To do this, find some way of recording all your spending, e.g.:

• Itemise everything you buy for one month in detail – you’ll be surprised how much goes on coffee, chocolate bars and magazines.
• Set up a monthly record with all your essential living costs, plus cash for other spending. (Download a ready-made spreadsheet from www.davidthomasmedia.com)
• Try one of the new online banks that use instant, real-time notifications.

Learn money-saving tricks

Check the Find Out More box below for websites that help you work out how to save money, and what benefits you may be eligible for.

Things to look in to

• proper financial advice for things like life or illness insurance, wills and pensions
• keep an eye on changes to pensions (the way you put in and take money out) and check out our help sheet 1sp on Savings and Pensions
• check what your union or professional association already provides by way of advice
• saving for now – have at least 3 months of living costs easily to hand and risk-free
• saving for later – have a plan for when you no longer want to work
• mortgage lenders tend to need to see two years of accounts before lending to self-employed people, and they’re interested in the ‘net profit’ figure

Help with Debt

If you’re in debt, perhaps with a variety of lenders and credit cards, put all the debt together in one place with the lowest rate of interest you can find.

Credit cards increase your debt. Avoid if possible, unless you’re very organised. There’s plenty of free help available if your debt is out of control. Don’t panic!

Find out more:
www.moneysavingexpert.com – almost too much advice!
www.moneymagpie.com – tips on setting up a business, saving money, etc.
www.becleverwithyourcash.com – great tips, simply explained
www.guardian.co.uk/money
www.moneyhelper.org.uk – independent tips and advice, including on pensions
www.pensionwise.gov.uk – pensions advice, now part of Money Helper
Pension Tracing Service – Lost track of your pension pots? This government tracing service may help
www.entitledto.co.uk – includes a benefits calculator
www.turn2us.org.uk – includes a benefits calculator
Professional financial advice:
www.unbiased.co.uk – find an advisor near you – for pensions, health care, savings, etc.
Energy, utilities, insurance:
www.uswitch.com – compare prices online for all sorts of things
Help with Debt:
www.citizensadvice.org.uk – advice / fact sheets from the Citizen’s Advice
www.gov.uk – look in the “Money and tax” and “Benefits” sections
www.nationaldebtline.org – free confidential advice
Tel: 0808 808 4000

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Posted on 31 January 2020