Unfortunately there isn’t an overnight fix for unhealthy finances but if you stick to these five golden rules then they will improve over time. The amount of time this actually takes will depend to a large extent on the state of your finances now and so the sooner you start the better.

Rule 1 – Earn more than you spend
This may seem like a really obvious thing to say but there are a lot of people who, through necessity, spend more each month than they earn. Obviously this is going to lead to debt if left unchecked and so it is vital that anyone with this problem does something to earn more or spend less. There are plenty of ways to do both if you put your mind to it and a few of the various methods are described in more detail on the ‘Living Within your Means’ page of this site.

Rule 2 – Make money from your money
Any money that you do have needs to be made to work for you. This means that you should research the market and find the best savings accounts with the highest interest rates and deposit your money in there. Alternatively if you’re feeling more adventurous and you know what you’re doing then you can invest your savings and hopefully earn that little bit extra. Either way, it is important that you get what you can from the banks and building societies so your finances look as healthy as possible in the future.

Rule 3 – Control your debt…or better still have none
There are very few adults left today who have absolutely no debt. If this is you though, do whatever it takes to stay that way as debt can easily become the biggest drain on your finances. If you already have debts then you need to clear them as soon as possible as your finances will never be healthy while they are there. Try playing the Credit Card Balance Transfer Game and cut the amount of interest you’re paying so that debts get paid off that little bit sooner.

Rule 4 – Keep an eye on the market
Banks and building societies are always competing for your custom and so they regularly try to outdo the rest of the market with special offers and other attractive deals. You should take full advantage of this and bag the best interest rates for savings and the lowest ones for loans and credit cards. Utility companies are the same – if one lowers their prices then so do the rest so work out which is offering the best deal and switch to them. Overall you could be hundreds of pounds better off each year.

Rule 5 – Forget loyalty
There is no bank or building society that is top of the tables for more than one financial product. This means that if you have a savings account with your own bank and then you start to look for a credit card, your bank’s card isn’t going to be the best with regards to interest rates and charges. Don’t feel that you have to be loyal to your personal bank – shop around and get the best deal, even if it is with a rival provider.

Healthy finances now are vital for a secure financial future and so it’s worth taking a bit of time to sort through the options and make a few changes. These golden rules are a good place to start and if used in conjunction with each other they can help to turn your finances around quicker than you’d think.