9 steps to financial fitness

It means having the knowledge and confidence to make the most of your money – on a daily basis. Through planned and unplanned events.

Easier said than done, but here are 9 good money habits to help put you on the right path.

Jump to:

Budgeting and spending

Borrowing and saving

Making informed financial decisions

Looking ahead

Financial fitness is about feeling confident and in control of your money day to day; and being prepared for the unexpected.

When planning your spending, include essentials like rent, utility bills, and transport. Remember to set aside money for things you enjoy. Our budget planner can help you see how you spend your money and spot areas to make changes. Set aside time to plan your spending each time you get paid. There are plenty of apps that can help you do this.

Creating a budget is relatively easy but sticking to one can be harder. Monitoring your expenses is vital. Our mobile app has a feature called Balance forecast that shows how much you could have left once your regular bills and payments have come out of your account. Being mindful of how and when you spend your money can help you stay in control. You might also spot areas where you could cut back.

Know your limits and avoid overspending. Focus your budget on essentials and the things you genuinely enjoy, such as new clothes or spending time with friends. 

Explore: How to manage your spending habits

Do not borrow money for food or regular bills. Using short-term credit or overdrafts with high interest rates for these items can lead to money troubles. If you are worried about money you can get confidential help.

Saving small amounts regularly is a highly effective way to build your balance. You can transfer money on payday or use an app to round up your spare change. Saving little and often is a great way to start building up the money you want to put aside. Set a goal to save towards or aim to save a little extra each month to cover any yearly costs you have.

Explore: How to save money

Review all your Direct Debits once a year. Use comparison sites to check you are getting the best value for your money. Research the best time to buy big-ticket items, such as booking flights in advance.

Look beyond the headline interest rates when you open a new account. Always read the terms and conditions. For example, check if a savings account limits when you can withdraw money, how much you can take out, or when and how much you can pay in. Get into the habit of reviewing all your products and looking around for better deals.

Build an emergency fund that covers 3 to 6 months’ worth of living expenses. Having this safety net means you will not need to rely on credit if something goes wrong. Our emergency fund calculator can help you see how long it would take to build an emergency fund. You could use this to create a timeline to work towards. 

Building up your savings gives you flexibility to take a career break, start a business, or retire comfortably. Whether you keep this money in a savings account or invest it will depend on your circumstances. Make the most of your workplace pension, especially if your employer matches your contributions. Use our retirement calculator to work out how much you need to save to retire when you want, with the money you want.

Explore: A guide to understanding pensions

This article was last updated: 02/07/2026, 06:24