Keep on top of your personal finances by cutting the unnecessaries

Travel Weekly is extending its personal and business information content by teaming up with financial advisor David Croft for a regular column offering answers to readers’ questions about personal finance. In this column, David, who previously worked in the travel industry, suggests a simple way to save some money.

With so much political uncertainty in the world, many of you reading this will understandably be feeling concerned. While you cannot control global events, disrupted routes or closed airspace, you can gain control by looking at your own money and making sure it is in good shape. 

In challenging times, many may be tempted to look for the big fix – a new job, a pay rise or even a lottery win! But one of the quickest ways to feel more in control is to get a grip on what is already leaving your account each month.

Almost everyone will find something in their outgoings that they do not need anymore, forgot was there or would not choose again if they were making the decision today. That is not a criticism, it is just how life goes as things get added and prices creep up. Money leaves your account quietly unless you go looking for it.

Make bucket lists

Go through the last three months of bank statements and make a note of every regular payment you make. It does not need to be any more in-depth than that unless you want it to be. All you want is a clear picture of what goes out every month and what those payments are for.

Once you have done that, split them into three buckets: essentials, useful but optional and things you could probably do without.

Essentials are the big ones: rent or mortgage, council tax, utilities, food, core travel costs, insurance and debt repayments.

Useful but optional might be the gym, extra streaming services, upgraded bank accounts, eating out and subscriptions to clubs and magazines.

The final bucket is where you will usually find the culprits: the app you forgot about, the membership you barely use, the ‘Pro’ or ‘Plus’ upgrade, or the monthly charge that makes you think, ‘I’m still paying for that?’ Auto-renewals are everywhere now, so it is worth making sure you are on top of them.

Spot the leaks

This is where the behavioural side of money comes in. We tend to avoid looking at our spending because we think it will make us feel worse – and I say that from experience. In truth, it has the opposite effect. Yes, it can feel intimidating, but there is also something satisfying about spotting the leaks, cancelling them and knowing that from next month your money is going somewhere better.

Plugging the leaks is just the first step. Perhaps that spare £30 or £40 a month starts building an emergency fund or helps clear a credit card faster. Maybe it just gives you a bit more breathing room so you avoid the overdraft at the end of the month. The point is that once you free money up, give it a role. Otherwise, it has a habit of disappearing again.

And if you have come this far, it is also worth challenging the bigger bills. Yes, a mobile phone is essential, but is the plan still right for you? The same goes for broadband. Are you paying for channels or extras you do not use? Review any services that have quietly drifted up in price over time. Loyalty often costs money, and a quick check-in every now and then can save more than you might expect.

This is not a case of being bad with money; it’s about checking whether what made sense 12 or 18 months ago still makes sense now.

When everything around you feels chaotic, controlling the controllables matters. With money, a lot of the basics are in your hands. Getting on top of your monthlies will not solve everything, but it can make you feel calmer, clearer and more in control.