Personal finance - I am an advice worker for 'Life Start Bradford', which is an advice centre for young people in the Bradford. Many of my clients are young employed adults who are in their first jobs and living away from home.

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Umar Saddique                                                                                Unit 8




I am an advice worker for ‘Life Start Bradford’, which is an advice centre for young people in the Bradford. Many of my clients are young employed adults who are in their first jobs and living away from home. I see most of them on a regular basis because they have difficulty managing their personal finance, so now I feel it is time to write a guide for them which will help them avoid some of their financial problems.


1. The importance of planning personal finance

It is important to plan personal finance because money and finance are part of every day life so you need to keep track of the money coming in and money going out which will probably help you achieve your financial goals. You probably won't be able to achieve every financial goal you've ever dreamed of. So if you identify your goals clearly and decide which are most important, by concentrating your efforts, you have a better chance of achieving what matters most. The best way to do this is by having money stashed in savings accounts or invested in stocks and bonds, which would grow gradually. You should draw up a list of goals, you should look for things that will help you feel financially secure, happy or fulfilled. Some of the items that you need save on are:

  • a emergency fund
  • getting out of debt
  • and paying the kids education

Financial planning also helps you:

  • make the most of your money
  • sort out your priorities
  • work towards long-term goals, allowing you to carry them out as and when you can afford it
  • find the right products to meet your needs
  • be prepared for unexpected financial shocks, such as illness or losing your job

You should organise your money requirments on an ongoing basis and you should have a system, which you use to meet the bills and costs of your daily living.these costs would be

  • Food and drink
  • Electricity bills
  • Council tax
  • Rent
  • Phone bill
  • Insurance
  • mortgage

 If you save your money rather than spend you could ensure the provision of cash funds for your future requirements such as buying your first house and car. You should check and record your cash sums both into and out of your personal funds. The choices you make now will determine your financial security in the future so you need to always plan ahead and establish a financial plan to keep track of your income and expenditures like a short-term and long-term plan such as:

Join now!

There are many demands on your money and even more firms willing to

help you spend or save it. Before you commit yourself, work through

these steps:

Think about your financial aims for the future, e.g. are you interested in?

  • saving for retirement
  • protecting your income in case you fall ill
  • saving for a rainy day
  • saving for something special (weeding)

2. Sources of advice for financial planning

There are many places where you could go to for financial advice and planning. Most of them are leading high street banks such as:


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