Money Basics Everyone Should Know (That No One Ever Taught Us)

Many people struggle with money not because they are bad with it, but because no one ever explained the basics. If this sounds like you, you are not alone. This guide covers a few simple principles that can make a real difference.

1. Know Where Your Money Is Going

Before you can improve anything, you need clarity.

• Write down your monthly income
• List your regular expenses (rent, food, transport, bills)
• Check bank statements if you are unsure

You do not need a complex spreadsheet. A simple list is enough. Awareness is the first step to control.

2. Spend Less Than You Earn (The Golden Rule)

This is the foundation of all personal finance.

If you consistently spend more than you earn, debt grows.

If you spend less than you earn, you create breathing room.

Even £20 left over each month is progress.

3. Build a Small Emergency Buffer

Life happens. Cars break. Phones die. Work slows down.

Start with a small goal:

• £500 is a good first target

Keep this money separate and only use it for real emergencies. This buffer prevents panic and reduces reliance on credit.

4. Be Careful With Debt

Not all debt is equal.

• High-interest debt (credit cards, payday loans) is expensive
• Minimum payments keep you trapped for years

If you have debt:

• List balances and interest rates
• Pay more than the minimum when possible
• Focus on clearing the highest-interest debt first

Avoid new debt unless it is necessary and affordable.

5. Automate Good Habits

Willpower is unreliable. Systems work better.

• Set savings to leave your account automatically
• Pay bills automatically to avoid late fees

When money moves automatically, you remove stress and mistakes.

6. Ignore “Get Rich Quick” Promises

If it sounds too good to be true, it almost always is.

Real financial progress comes from:

• Consistency
• Patience
• Boring, repeatable habits

Slow progress that lasts is better than fast wins that disappear.

7. Progress Is More Important Than Perfection

You do not need to be perfect with money to improve your life.

Missing a month does not mean failure.

Starting small does not mean it is pointless.

Every step forward counts.

Final Thought

Money skills are learned, not inherited. If no one taught you, that is not your fault. The fact that you are learning now already puts you ahead.

Start small. Stay consistent. Be kind to yourself.