How to sort your finances: From budgeting, to savings and pensions

In this episode of 'This is Money', hosts Georgie Frost and Simon Lambert delve into a comprehensive mid-year financial review, aimed at helping listeners reassess their personal finances and regain control. They discuss the importance of budgeting, considering it the foundation for managing finances and achieving financial goals. The episode emphasizes that budgeting leads to a better understanding of income and expenses, which is vital in turbulent economic times. Simon shares his struggles with budgeting and offers practical advice on categorizing expenses and using tools, like spreadsheets or budgeting apps, to track spending.

The duo acknowledges the heavy news cycle around finances, stressing that anyone can benefit from returning to the basics, regardless of their financial knowledge. They highlight the role of effective budgeting in determining spending habits and potential savings, noting how small adjustments can lead to significant financial improvements. They also address debt management, distinguishing between good and bad debt, and recommend paying off expensive debts first.

As the conversation progresses, the importance of saving and investing is underscored, with discussions about the right types of accounts, such as ISAs and pensions. The episode guides listeners on how to calculate their savings goals realistically and the role of pensions in the long-term financial landscape. They also touch upon tax efficiency in managing savings and investments. Georgie recommends having a will in place for financial planning and peace of mind. The episode wraps up with practical steps towards financial independence, encouraging listeners to evaluate their current financial situation and make necessary adjustments.