Ways to regain control over your money and your life

Financial stress has become a widespread issue in the UK, with recent data showing that 62% of British adults have experienced financial stress or money worries in the past year—equating to approximately 40 million people. Even more concerning, nearly one-third of adults report that money worries have negatively impacted their mental health. When financial pressures mount, regaining control may seem impossible, but there are steps you can take to restore balance to both your finances and overall well-being.

Create a Clear and Realistic Budget

The foundation of financial control begins with understanding exactly where your money goes. For that, creating a realistic budget isn't about restricting yourself—it's about making informed decisions that are in line with your priorities and financial situation. Begin by tracking your income and expenses for a month, categorising each transaction. Many mobile banking apps now have this feature automatically, making it easier than ever to see spending patterns. Once you have a clear picture, identify areas where you can reasonably cut back without making your life miserable. The Money Helper Organisation has an excellent free budget planner tool that helps you break down your spending and identify opportunities for saving.

Prioritise and Tackle Your Debts

Debt can quickly become overwhelming when interest compounds and multiple payment deadlines create a constant source of stress. Taking a systematic approach to debt management can change what feels like an insurmountable problem into manageable steps. Start by listing all your debts, including the amount owed, interest rates, and minimum payments. For those juggling multiple high-interest debts, paying it all in one with debt consolidation loans can give you a more streamlined approach to management by combining several debts into a single monthly payment, potentially at a lower overall interest rate. If debt consolidation isn't appropriate for your situation, consider using either the "avalanche method" (paying off highest-interest debts first) or the "snowball method" (paying off smallest debts first for psychological wins). Both approaches have merits, and the right choice depends on your personal circumstances and motivational needs.

Set Financial Goals for Long-Term Success

Without clear goals, it's easy to drift financially and miss opportunities to build future security. Setting specific, measurable, achievable, relevant, and time-bound (SMART) financial goals gives your money management purpose and direction. Begin by identifying what matters most to you—this could be building an emergency fund, saving for a home deposit, planning for retirement, or simply becoming debt-free. Break these larger goals into smaller milestones that you can celebrate along the way. Studies often report that people with clear financial plans and goals usually have higher levels of well-being and lower anxiety about money, highlighting the mental health benefits of financial planning beyond the practical advantages.

Build Healthy Financial Habits for the Future

Sustainable financial control comes from consistent habits rather than short-term fixes. Small changes in your daily financial behaviour can compound over time to create positive impacts on your financial health. Consider automating your savings and bill payments to remove the temptation to skip them. Review your subscriptions regularly and cancel those you no longer use or need. When making purchases, implement a 24-hour rule for non-essential items to lower impulse buying. Another powerful habit is regularly reviewing your progress. Schedule monthly financial check-ins to assess how you're tracking against your budget and goals, making adjustments as necessary.

Take Care of Your Mental Wellbeing

Financial stress and mental health are closely interconnected. As you work to improve your financial situation, remember to care for your mental wellbeing too. Be kind to yourself—financial difficulties can happen to anyone, and recovery takes time. Focus on the progress you're making instead of mistakes or setbacks. Connect with others who understand your situation, whether friends, family, or support groups. If financial stress is affecting your mental health, don't hesitate to seek support. Organisations like Mind offer resources specifically designed to help people manage the mental health impacts of financial difficulties.

When you take these practical steps and maintain perspective, you can begin to regain control not just over your money but over your sense of wellbeing and future possibilities. Remember that financial recovery is rarely a straight line—be patient with the process and celebrate every step forward, no matter how small.