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This post will share the essential money management apps you need to manage your finances.
Towards the end of last year, my job switched to pension providers, and I took the opportunity to do some housekeeping.
This included combining an old pension from a previous job and nominating beneficiaries for my workplace pension and life assurance policies.
After about two weeks, I received a letter that my current pension had successfully been transitioned to the new provider and the old one had been merged.
I felt satisfied with the results after realising the task I’d been putting off for years could be done in an hour.
Fast forward to the new year, whilst I was still basking in the hype of having my pension in order, I began to think about other aspects of my financial life that needed to be sorted.
Whilst I didn’t necessarily have any New Year’s resolution, I resolved to finally get around to getting my personal finances in order.
I kept postponing some of these decisions due to sheer laziness, and as a result, I lost out on some of the benefits I could have gotten.
But what I’ve learnt about these sorts of deductions is that it is better late than never.
Now that I’ve sorted out my accounts, I thought I should share to document and keep myself accountable.
As an overly anxious eldest daughter, I always like to have every aspect of my life that I can control in order.
This gives me a sense of sanity and stability, especially when faced with many uncertainties.
It also gives me the confidence to forge ahead, mainly if I’ve used the opportunity to brain dump.
Sometimes, a good brain dump is all the motivation you need.
Let’s get into it!
Here are all the essential money management apps you need to get your finances in order.
In no particular order;
Bank/Current Accounts
About five bank accounts are split between my personal and business finances.
As a rule of thumb, I have one that receives my salary and pays my bills, after which the rest of the funds are moved to another account, which acts as an emergency fund.
From there, I take out my savings and expenses and put them into relevant accounts.
I know it might sound like a lot, but it really isn’t, as I have direct debits/standing orders in place, so I don’t do anything.
The same applies to my business accounts; I have Wise for receiving income in various currencies and Starling for expenses.
This ensures I can file my annual self-assessment tax returns quickly.
Savings Accounts
Here in the UK, we have an option of a tax-free savings account called ISA (Individual Savings Account).
Each tax year, between April and April, we get an allowance of £20,000, which can be split between a Cash ISA and a Stocks & Shares ISA.
I leave a good chunk of my savings in the Cash ISA account, which has the best interest rate and flexible withdrawals.
It is currently Trading 212.
Then I put some disposable money in my Stocks & Shares ISA.
I’ve yet to master investing in the stock markets, so I’m just playing it safe with small amounts.
Most of my money is in the Cash ISA, which generates interest.
Aside from the Cash and Stock & Shares ISA, we also have the LISA(Lifetime Individual Savings Account.
This comes with an annual allowance of £4,000, which the government tops with 25% annually.
The primary purpose of this account is for first-time buyers saving for their first home or anyone saving for retirement.
Most people use it for the former reason, as a pension is generally better for retirement savings.
I use Moneybox for my LISA, which has the best interest rates.
Pension
Since I work full-time, I have a workplace pension to which my employer and I contribute.
Working in the private sector means employer pension contributions are generally lower than those in the public sector.
Regardless, I try to match the highest percentage my employer offers to not leave any money on the table.
I love how easy and seamless it is to pay into a workplace pension; I do not think about it, and it adds up consistently.
If I hadn’t worked full-time, I would have had an SIPP, a self-invested personal pension.
This is great for self-employed or business owners.
My current workplace pension is with Scottish Widows, but I’ve had previous experiences with Atlas Master Trust and Fidelity.
If you want to open a SIPP, Scottish Widows and Fidelity offer so you can shop around to find the one that works best for you.
In General,
I felt a renewed sense of direction when sorting my savings accounts through my money management apps.
I had an overview of my finances and where I stood, which helped me create money goals for the year.
For now, my primary goal is to increase my income.
Other secondary goals include learning about investing in the stock market, saving for my first home and learning ways to generate retirement income.
In Conclusion,
Money matters are definitely anxiety-inducing, hence why many of us keep pushing it away and pretending it doesn’t exist.
But honestly, I’ve learnt that the earlier you tackle it head-on, the better.
You might not like what you see, but at least you’re informed about what needs to be done.
Whether or not you address it is up to you.
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