Personal financial planning can feel overwhelming, especially when the jargon sounds more like it belongs in a boardroom than in your everyday life. But whether you’re earning your first salary, navigating self-employment, or planning your retirement, financial literacy isn't just a “nice to have”, it’s fundamental.
As a qualified accountant, content creator and author of The Money Manual, I’ve seen first-hand how powerful financial education can be. From explaining tax codes to building long-term wealth, the moment people feel in control of their money, something shifts. Confidence goes up. Decisions feel less daunting. And you stop feeling like your money is controlling you.
The good news? You don’t need to be an expert to make good financial decisions. You just need to understand the building blocks.
1. Know what’s coming in – and where it’s going
Before you start optimising anything, get clarity. What’s your monthly income after tax? And where is that money going?
Track your spending across 2–3 months. That means looking beyond rent and food and noticing what’s going out on subscriptions, takeaways, transport, and impulse buys. You might be surprised at how much “invisible spending” creeps in.
This isn’t about guilt – it’s about giving yourself information. That clarity helps you create a budget that works for your real lifestyle, not an idealised version you’ll abandon by week two.
2. Build financial buffers
Life is unpredictable. That’s why building an emergency fund is one of the most empowering steps you can take.
Start with a target of £500, then aim for 3–6 months of essential outgoings. Keep it somewhere easy to access, like a high-interest savings account, but separate from your current account so you’re not tempted to dip into it for everyday spending.
3. Understand your tax and benefits
If you’ve ever looked at your payslip and wondered, “why am I paying this much?”, you’re not alone. Many people don’t understand their tax code, what benefits they’re entitled to, or how pension contributions affect take-home pay.
In The Money Manual, I break this down simply, but if you’re a member of ICAEW or new to managing your finances, the Personal Financial Planning Fundamentals course is a brilliant place to start. It explains the fundamentals clearly, including tax, saving, budgeting, and protection.
4. Make your money work for you
Once you’ve got the basics covered, it’s time to think long term. If you’re not already contributing to a pension, it’s worth looking into, especially if your employer offers matching contributions.
But don’t stop there. ISAs (especially Stocks and Shares ISAs or Lifetime ISAs if you’re saving for a first home) offer tax-free growth, and there are increasing options for sustainable and values-based investing.
You don’t need thousands to get started. Even £50 a month, consistently invested, can grow significantly over time thanks to compound growth.
5. Don’t go it alone
Money can feel isolating. But in reality, we all have questions and nobody has it completely figured out. That’s why I created my Instagram page, @abigailrosefoster, where I break down complex financial topics into everyday language. From tax codes to mortgages to investing, there’s no such thing as a silly question.
You don’t have to become an expert overnight. But by engaging with your finances regularly, asking questions and building your confidence over time, you can go from anxious to empowered.
Final thought? Don’t wait for a “better” time to start. Whether you're earning £20k or £200k, the sooner you build a system that works for you, the more freedom and security you’ll have down the line.
*the views expressed are the author's and not ICAEW's