How important would you say financial admin is? If you’re anything like me, you’ll believe that it is super important and something that we should all be on top of. But what exactly is financial admin and how can you keep on top of it? I’ve recently been talking with Standard Life Savings about what I do. So how should you keep track of all your incomings and outgoings?
Keep track of your income and your expenses
It sounds so simple but so many people don’t do it! Did you know, 10% of adults don’t review their finances at all? When something strange in your finances crops up, it is so much easier to distinguish if there is a clear set of income and expenses to work from.
Set a budget
As well as keeping track of income and expenses, setting a budget ensures you know just how much money you have to spend on each thing. Then if you need to cut expenses somewhere, you can see which budgets are feasible to cut slightly. 40% of people put off sorting out their day to day budget when a few minutes out of their day would probably stop a headache in the long run!
Check ALL of your financial products on a regular basis
People put off checking their finances because they find it boring (32% of people say this) or find it difficult and don’t want to ask for help (8%). There are so many different financial products that any one person can hold – current accounts, savings accounts, ISA’s, pensions, Premium Bonds, investments, insurance – these should be checked on a regular basis to ensure you are taking advantage of the best you can for each product.
Make plans for the future
Financial admin is super important if you are making plans for the future. Whether that is for a child, a wedding, a house or a pension for retirement, people often don’t plan for them straight away as they seem so far away. There is plenty of support out there and where possible, sign up for an online account so you can keep track in real time without having to rely on other ways to keep in control of your money.
Remember that products like pensions are ‘an investment and, as with all investments, the value can go down as well as up, and you may get back less than what you put in.’ This is why it is key people keep track of their financial products instead of just letting them sit there. One fifth of people who have lost their pension details don’t even bother to sort it out, preferring to live in blissful ignorance! How crazy is that?
In a day and age where online banking apps are so easily available, you would be forgiven for thinking more people were in control of their finances but just 17% of those aged 18-34 say they check their finances via a mobile device (I’m one of those 17%!) and only 5% of those who have a private pension said they used their pension provider’s app to check it. I am about to start my pension but I know Steve never checks his – he has a company one and a private one that his Grandad set up when Steve turned 18 – I’m the one who has to keep check to make sure everything is okay!
Standard Life Savings have actually created a fabulous book called the “Little Guide to Easy Financial Admin” – which will aim to guide people with quick and easy to do tips and hints. You can download and print a copy here or you can enter to win one of two hard copies later on today, either on my blog or on Twitter – just check back later on this evening!
Do you have some top financial admin tips? How often do you keep track of your own finances and do you take responsibility for others finances too like I sometimes have to?
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I have so many seperate savings accounts for holidays, saving for car insurance, a seperate account to transfer all bill money to and random other things so that I know what I am left with in my account after payday is all mine. I find it helps me to track things better x
This is a great post – I have to admit I’m not that up on admining I just do what I do and hope for the best lol
This is such a good post, I’m normally really good with things like this but I am going to bookmark it for future reference in case I ever forget anything xx
It’s so important and I used to be really good at it but since I had Edith, with her being so demanding, it’s just too much! H x
I like to think I am up to date on it, but unfortunately I am hit and miss with it, I either am on top of it or let it slip a bit. This is a great post x
This is a lovely post. Thanks for sharing this tips. I need to get my finances in order.
Fantastic post filled with lots of great tips. I really hope those who aren’t financially savvy or who are young get the chance to read this. xxx
I am terrible for not doing this. My husband tries to budget but I’m not very good at telling him where I’ve been spending the pennies so it makes it hard. Need to try harder!
This is bang on topic for me I need to get my books straight!
I am not the best at this, though currently it isn’t too much of an issue, but should it become one, I am emailing you 😉 x
Since I’m self-employed, I do keep a detailed spreadsheet of my income and business expenses, but I probably wouldn’t if it wasn’t for my tax return! I’m terrible at sticking to a budget though.
I always keep on top of all of my budgets for the month – I am just terrible at saving!
A well written and informative post hubby sorts all that out and he is not bad at it.
So far I don’t really have much going on in regards to my financials at all so I don’t think I would have any idea what I was doing if I did. Great tips here! Thank you!
Great post. I’ve always had a separate current account for bills which I transfer money over to each month makes life so much easier
I agree with you, knowing how much we are spending each month is very important. I have a sheet that I update when I have to, with different direct debits and other expenses.
Very essential! I’ve been using an excel file since I started working to keep track my expenses and income. It totally helps. It’s perfect for monitoring and making yourself more disciplined.
I think it is very important, but it’s hard when you have a husband who is the complete opposite of me when it comes to money and likes to spend it willy nilly
I always try to keep track. I take the cash for my travel to work out of my account as soon as I get paid. Then I know once my bills go out. What is in my account is my ‘disposable’ income for that month. Getting into the habit of checking your balance every oher day is a good one I find to make sure you are spending wisely.
This is really great advice for all ages. I have an app on my phone to track my daily spending and every time I whip it out my friends are surprised I do it and say they wish they did the same (and they do nothing…) It definitely makes me feel more secure! I’m amazed 10% of adults don’t do anything!
i like that i dont need to worry about this but its interesting x
I’m so hopeless at financial admin – For a fairly intelligent woman I have become so lazy at checking everything is in order and that we are getting the best deals. Luckily my husband is so much better than me – which I know makes me sound like a 1940’s housewife!