What Can Money Management Help You To Achieve? 

What is Money Management?

In essence, money management is the process of tracking and controlling funds, in order to meet specific financial goals. This can include saving for a house, increasing daily spending, or building general financial confidence, for example. 


Money Management can be done independently. However, for many vulnerable adults, doing so is not always possible. It can be difficult to determine how to allocate funds for everyday necessities when medical or support-related costs are added on top. When this all becomes too much, the duty often falls to family members or carers – risking the overall efficiency of any support being provided. 


It can be hard to see the necessity of outsourcing money management, when you’re uncertain about how it may help on a larger scale. Whether it’s simply making the most of your existing income, or building savings for the future, below are just some of the many successes that money management can help you to achieve. 

Saving With Intention 

The overarching goal that many wish to achieve through money management is the ability to save for something specific – whether it’s a holiday, special occasion, or even just a concert! 


Of course, when bills are piling up and everyday costs seem impossible, it can be hard to conceive the feasibility of saving. That’s where effective money management comes in. By helping you to break down the process into actionable steps, necessities (such as utilities and rent) can be prioritised – allowing you to identify smaller amounts that can reasonably put aside. 


No matter the beginning point, even those who are in a situation where saving seems unreasonable can achieve such things. By monitoring spending and identifying potential income (such as an unclaimed benefit), nothing is unattainable, in time. 


At Money Carer, we assist individuals by providing crucial oversight to meet these goals. By identifying what needs to be paid, and further, what can or can’t be paid when funding becomes available, we balance protection and autonomy. So, while regular spending goes uninterrupted, we’re helping you to build necessary savings in the background! 

Building Financial Confidence 

Money management is never truly oriented towards a singular goal. Although it is typically put in place to reach specific goals, as above, the outcomes it can achieve go far beyond this – and frequently go unnoticed when prioritising savings. 
Without realising, many who benefit from a money management service often experience a sense of financial independence they may not have felt previously. Though it may seem contradictory, financial oversight can be a helpful way of achieving a sense of financial autonomy. 


Efficient money management should aim to meet the variable needs of those who require financial support. Of course, making necessary payments in a timely manner and identifying potential risks, is of utmost importance. However, an emphasis on financial autonomy is just as crucial to this process. Identifying the areas where independent action can be taken is a large part of this. 


When it comes to those in a vulnerable position, a fine line has to be drawn between independence and protection – which can be tricky to navigate. By determining the amounts required for everyday necessities, opportunities for spending can be identified. This in turn allows more independent decisions to be made, within established, safe parameters. 


Maximising Your Income 

One of the primary ways that money management can optimise income is through the identification of unnecessary or missed payments. This could be anything from an unclaimed benefit to an accidental subscription. 

Most people do not thoroughly check their accounts for every payment made and received. Despite being a recommended habit, it can be time-consuming to check every transaction, meaning those that are incorrect often go unnoticed. These payments inevitably add up over time, and those of a minimal amount may never become realised as the reason that funds are unexpectedly depleting or growing.


So, whether it’s helping to identify an unused subscription you’ve been paying for, or a benefit you’ve not claimed, money management can help you to gain an understanding of how your finances fluctuate over time and assist with overall stability. 

Establishing Long-Term Financial Security 

When experiencing a period of difficulty with money, it can be hard to picture the financial future. Money management is possible under any circumstances – though this can often feel like a short-term solution with the immediacy of getting things paid. What tends to be missed when solely focusing on the situation at present, is the future potential that money management can lead to. 

The most common mistake when trying to effectively manage finances, is considering short-term security without taking into account longer-term sustainability. Essentially, this means that many go in with significant motivation, without thinking of whether their newly adopted financial habits can be maintained over a longer period of time. If the answer is no, reaching out for extra help is always an option. 


There are a number of questions you can ask yourself when evaluating such: 


1. Are there any financial risks present? (e.g. gambling, exploitation, debt…) 

2. In an emergency, are there sufficient funds to be relied upon?

3. Can learned skills help with navigating potential financial difficulty? 


By developing a clear understanding of your current financial circumstances, it becomes far easier to navigate the future. Long-term financial security does not have to mean extensive, established savings – but it does concern resilience, and the identification of risks prior to them becoming an issue. 


So, whether you’re starting your own journey with money management, supporting someone with the process, or searching for an external service provider – don’t give up. It’s easy to fall back on damaging financial habits when you’re in a difficult place. Whatever your situation, you’re not alone. 

At Money Carer, we assist thousands of vulnerable individuals and carers with money management duties, aiming to minimise financial risk, while not undermining the autonomy of any involved party. To find out more, you can call us on 0161 791 3064 or drop us a message at info@moneycarer.org.uk. 

We’re here to help.