Beginning

Have you read the Basics section.

Managing

Spending is for wants and needs – both now and in the future. The less you spend the more you have. How do you know that your current spending on wants is more important than your future needs?

The answer is that you don’t know. But you can find out. There are lots of ways, but they have to be relatively painless and disciplined or you won’t do it. Here’s one suggestion.

One possible process

Every few months, with your life partner, you choose your preferred relax-time in the day and review your bank and credit card statements. You note the amounts under a set of headings that equate to your lifestyle. (Start with Essential/Non-essential).

After a few months start to categorise in more detail. Improve and revise as you learn more. When you chose to discuss a particular category that occurs in the period, you make a guess at what the total would be for the year (revising any previous estimate). Write it down (or stick it in a spreadsheet – whatever suits). Find your own ways to prevent this becoming a chore (time limit?).

If you have debts your ‘spending’ must include a plan to pay them off.

Over the months you will build up a picture of where your money is going and can start thinking about choices. More important, you can input what you are learning – about your spending and yourself – into your planning for the future.

One possible help

Have an extra bank account (so long as it’s free). Preferably one that allows you to classify your spending. Use it to learn about your spending habits.

Change your classification rules every so often to focus on areas where you are suspicious (of yourself?). Fast food? Bar bills? House ‘improvement’? Personal appearance?

Optionally, here’s a link to a page that translates regular saving into long -term gain.

Spending efficiency

This page has so far been about ‘choice’. ‘Efficiency’ is the other feature of spending control.

Find the cheapest way of having what you have decided to have.

There are many online sources – perhaps too many. But the most useful could be your friends. Try making it an occasional part of any of your regular discussions.

Fraud

The possibility of fraud infects all of money management. Follow the advice of your providers and keep alert. Ignore offers that seem too good to be true. Share insights with your friends and associates.

Other help & tricks

So many different sources - once you start looking you’ll be flooded with tricks and tips, and it can be hard to distinguish genuine help from marketing.

In a crowded field, Martin Lewis has earned the right to a mention for his website MoneySavingExpert

The government website https://www.gov.uk/ is authoritative on the laws and regulation covering money matters. It makes a good effort at simplicity in a complex area.

The Money and Pensions Service is a statutory body ‘sponsored’ by the Department for Work and Pensions. Its MoneyHelper advice site is very clear on some things and very confusing on others, clearly influenced by Treasury pressure to preserve the profits of the Financial Services Industry.

PensionWise offers a useful one-shot service for the over-55s. We would comment this is 35 years too late.