How to Manage Your Money During Tough Times

It’s becoming more difficult to make ends meet, and with the current economic climate, managing your finances and making them go further is at the forefront of many people’s minds – this is why taking steps to manage your money is essential. If you’re faced with an emergency expense, a payday loan can help, but taking additional steps to learn how to make your money go further means you can deal with hard times more easily. Here are a few tips to help with money management.

Create a budget

This is one of the first places to start when it comes to managing your money. Creating a budget that includes your income and expenses means you can get to grips with your current financial situation and begin to make changes. Start by looking at how much income you have each month. Then deduct primary payments that you can’t live without, like mortgage payments, car finance and insurance.

From here, the amount you have left is the amount you can spend each month on other things. Allocate this amount to other areas of your life, like entertainment and subscriptions, as well as loan repayments. This will help you manage your money effectively.


Identifying and prioritising your expenses is an essential part of managing your money. This means you can ensure your essential expenses are paid, for example, your mortgage and other utilities. You can also prioritise savings to help you build up a pot of cash for emergency expenses, and ensure you’re paying off any outstanding debt to free up your cash flow to benefit your financial health. Prioritising can also help you reach your money goals more easily, for example saving for the future or paying down your debt.

Reduce expenses

When trying to manage your money in tough times, reducing your expenses is crucial. You can do this in a few ways. Firstly, go through your outgoings and identify if you’re spending too much money on unnecessary expenses, like eating out, subscriptions, and other non-essentials. This way, you can prioritise what’s important and have more money leftover from your income to go towards your future, savings, or paying off debt.

Create an emergency fund

Whilst this may be difficult to do during tough economic times, an emergency fund is crucial to help you when you’re struggling financially. Saving a small amount each month means you can build a pot of savings to use when you need it, rather than using your income and putting your financial health at risk.

An emergency fund allows you to deal with issues like emergency vet bills, and car or home repairs more easily, without having to worry about not being able to afford your primary expenses. Putting a small amount of cash away each month will mount up to allow you a sum to fall back on.

Manage debt

Debt takes up a large portion of your income, so doing what you can to pay it off means you’ll be able to improve your cash flow and financial health. Try not to take out additional finance when you’re struggling – this can make it harder for you to get a handle on your debt, and you could end up stuck in a cycle. You should always make sure you know the total cost of borrowing before applying for a loan to ensure that you can make the repayments as necessary.

Increase your income

This may seem obvious, but increasing your income means you’ll be able to manage your money more easily during tough times. There are a few ways you can do this – you could monetise your hobbies, take up part-time work, or train in additional skills and certificates to allow you to apply for higher paying jobs, or learn a skill that you can charge for. Increased income means increased cash flow and the ability to deal with unprecedented situations more easily.