Many people feel stuck in a cycle of overspending, struggling to save, or finding it hard to make ends meet. But here’s the truth – being bad with money doesn’t mean you’re lazy or careless. More often, it’s about habits, circumstances, and not having the right tools or knowledge in place.
Money management problems can happen to anyone. Rising living costs, unexpected expenses, or a change in circumstances like redundancy or illness can throw even the most careful budgets off course. Add in a lack of financial education – something many of us never had growing up – and it’s no wonder so many people find themselves asking: why can’t I manage money?
Common reasons for money management problems
There are lots of reasons people feel bad with money, and often it’s a mix of factors rather than just one. Some of the most common include:
- Living costs outpacing income – Wages don’t always keep up with inflation, leaving less to cover essentials.
- Impulse spending – Buying something for a quick mood boost can become a habit that chips away at your budget.
- Lack of budgeting skills – Without a clear plan for your income and outgoings, it’s easy to lose track of where your money is going.
- Debt repayments – High interest on credit cards, loans, or overdrafts can make it feel like you’re running to stand still.
- Irregular income – If you’re self-employed or on a zero-hours contract, unpredictable earnings can make planning ahead difficult.
Recognising the reason behind your money struggles is the first step towards change. Once you understand the ‘why’, you can start working on the ‘how’.
Breaking the cycle of bad money habits
If you’ve fallen into a pattern of poor money management, it doesn’t have to stay that way. Small, consistent changes can make a real difference.
Start by tracking your spending for a month. Write down or use an app to record every payment you make. You may be surprised at how much those small, regular purchases add up. From there, you can set realistic limits for non-essential spending and find areas to cut back.
It can also help to prioritise your payments. Rent, mortgage, and council tax should always come first, followed by utilities and essential living costs. Understanding the difference between priority and non-priority debts can help you decide which bills to focus on.
Why can’t I manage money when I try to budget?
Many people set a budget, stick to it for a few weeks, then find themselves slipping back into old habits. If this sounds familiar, you’re not alone. Budgets sometimes fail because they’re too strict, unrealistic, or don’t leave room for flexibility.
Instead of aiming for perfection, build a budget that works with your lifestyle. For example, include a small allowance for fun or leisure, so you don’t feel deprived. You can use free online budgeting tools to make this easier, or simply write out your income and outgoings in a notebook or spreadsheet.
Remember, budgeting isn’t about saying no to everything – it’s about making sure your money covers what matters most to you.
Tips to improve your money management
If you’re ready to take control, here are a few practical steps that can help:
- Automate your payments – Set up direct debits for essential bills so you don’t risk missing them.
- Pay yourself first – Even a small standing order into a savings account each month can build a habit of saving.
- Set money goals – Whether it’s clearing a credit card or building an emergency fund, having a goal makes it easier to stay motivated.
- Cut back on high-interest debt – If debt repayments are holding you back, consider looking at structured options like a Debt Management Plan.
When money worries become overwhelming
Sometimes, no matter how much you budget, money management problems feel too big to tackle alone. If debts are piling up and repayments are eating into your essentials, it may be time to get professional support.
At MoneyPlus, we offer confidential, non-judgmental advice to help you find a realistic way forward. That might mean exploring solutions such as a Debt Management Plan or an Individual Voluntary Arrangement. These solutions can help make your debts more manageable, giving you the breathing space to focus on your everyday life.
After taking out a debt solution, 2 in 3 customers who took part in a survey by MoneyPlus said they felt less stressed*.
Taking the first step towards change
If you’re struggling with money management, the most important thing to remember is that money skills can be learned. Habits can change, debts can be managed, and support is available to guide you through.
Visit MoneyHelper for free, impartial advice, or contact MoneyPlus for confidential support tailored to your situation. The first step might feel daunting, but it could be the start of a more confident relationship with your money.
*MoneyPlus customer survey 366 respondents May 2025.
