Category: The M&G System

The five-step system that runs through everything — get clear, stop the leaks, clear the bad debt, build the buffer, start growing.

  • The Mental Side of Money

    The short version: Money stress is not a budgeting failure — it’s a normal response to uncertainty about a resource that affects almost every part of your life. Understanding why money triggers anxiety, guilt, and avoidance is the first step to changing your relationship with it. The practical tools (budgets, trackers, savings habits) work better once you understand what’s driving the behaviour — and once you’ve given yourself permission to look at the numbers without judgement.

    You can know that you should check your bank balance.

    And still not be able to open the app.

    That gap — between knowing what to do and actually doing it — is where most money problems live. And it’s almost never about the maths.

    I’ve spent ten years working inside financial institutions, and I now coach people through the practical side of getting money under control. The single thing that surprises most people I work with: how much of the work is about mindset before it’s about spreadsheets. The numbers are usually the easier part.

    Why does money cause so much anxiety?

    Because money isn’t just money. It’s tied to security, to identity, to whether you’re keeping up, to what your parents did or didn’t have, to how capable you feel as an adult. When something is that loaded, looking at it squarely becomes much harder than looking at any other number on a spreadsheet.

    There’s also a specific anxiety loop that money creates: avoidance makes things feel more manageable in the short term, but makes the actual situation worse — which makes it harder to look at — which increases avoidance. Round and round. The longer you don’t check, the more frightening checking feels.

    This is not weakness. It’s a very human response to something that feels threatening. The problem is that avoidance is the one thing that guarantees the situation gets worse.

    What is money shame, and where does it come from?

    Money shame is the belief that your financial situation reflects your worth as a person. That if you’re in debt, or haven’t saved enough, or don’t understand how ISAs work, there’s something fundamentally lacking in you.

    It comes from a few places:

    • We’re not taught this stuff. Most people leave school without having covered compound interest, tax, credit scores, or budgeting in any meaningful way. The gap isn’t personal failure — it’s a curriculum gap.
    • Money is still taboo. We don’t talk about it openly, so everyone assumes everyone else has it figured out. They don’t. They’re just not saying.
    • Marketing exploits the gap. Financial products are marketed to make people feel one step behind, so that buying something feels like catching up.

    Shame keeps people stuck because it makes the problem feel personal rather than practical. And once it feels personal, fixing it stops feeling possible.

    How does your relationship with money form?

    Research in behavioural finance consistently shows that adult money behaviour is heavily shaped by early experience. Not just what was said about money growing up, but what was felt — was money a source of tension? Was it discussed openly or kept secret? Was spending a reward? Was scarcity normal?

    These early patterns become defaults. Someone who grew up with financial instability may spend impulsively when money arrives, because experience taught them it won’t last. Someone raised with “money doesn’t grow on trees” may feel guilty about any spending that isn’t strictly necessary. Neither pattern is rational — but both are understandable, and both can be updated.

    Understanding where your defaults come from doesn’t excuse the behaviour — but it does make it easier to change, because you can see it as a pattern rather than a personality trait.

    What are common unhelpful money mindsets — and what replaces them?

    These are the ones I see most often, and the reframe that actually helps:

    Unhelpful patternWhere it shows upA more useful frame
    “I’m just bad with money”Avoidance, learned helplessnessMoney is a skill. Skills are learnable. You weren’t taught this — yet.
    “I’ll sort it when I earn more”Postponing the basics indefinitelyHabits don’t improve automatically with income. The system needs to come first.
    “I deserve this” (after stress)Emotional or retail therapy spendingYou do deserve good things. The question is whether this specific purchase actually delivers them.
    “It’s too late for me”Paralysis, especially from 35+The second best time to start is now. The maths always improves with action.
    “I don’t earn enough for any of this to matter”Disengagement from tracking or savingSmall decisions compound. A £50/month habit is £600/year and four-figure over a decade.

    A real example: Gemma and the unopened bank app

    Gemma, 31, hadn’t opened her banking app in six weeks. She knew things weren’t great — a credit card balance that had drifted up, a direct debit she wasn’t sure was still running, a savings account she thought might be empty. The not-knowing felt safer than the knowing.

    When she finally opened the app, the number was worse than she’d hoped and better than she’d feared. The anxiety was real. But the act of looking — just looking — broke the loop. She could now see a fixed problem rather than an imaginary, growing one.

    The debt didn’t get smaller that day. But her relationship to it changed completely. A problem you can see is a problem you can solve.


    The M&G System: where mindset fits in

    The M&G System is four steps in order: stop the leaks, clear the bad debt, build a buffer, start growing. But before any of those steps, there’s a prerequisite that isn’t in the list: permission to look.

    You can’t stop leaks you can’t see. You can’t clear debt you haven’t added up. You can’t build a buffer without knowing what’s left.

    So if you’re stuck at the start, here’s what the system actually asks of you first: open the app. Pull the number. Write down what you owe. Not to feel bad about it — to turn it from a formless fear into a specific, finite problem. Specific and finite is solvable.

    Three moves to do this week:

    1. Notice your avoidance pattern. When did you last check your balance? When did you last look at your debts? Name the thing you’ve been not-looking-at.
    2. Open one account you’ve been avoiding. Just look. Write the number down. Don’t do anything else yet.
    3. Identify one belief you have about money — “I’m just bad with this”, “it’s too late”, whatever it is — and ask: is this a fact, or a story? Most of the time, it’s a story.

    A clearer picture starts with one honest look

    If you’re ready to actually see where things stand, the free Financial MOT is a good place to start. It’s a straightforward snapshot of your money situation — income, outgoings, debts, savings — laid out clearly so you can see what you’re actually working with.

    Get the free Financial MOT →

    Or if you’d find it easier to do this with someone, a free Money Clarity Call is 20–30 minutes — just an honest conversation about where things stand and what to do next.


    Two ways to go further

    If you would rather have the whole thing in order instead of one post at a time, that is what the book does.

    Money & Growth 101 — the no-fluff UK guide to clearing debt and building real wealth.

    Prefer to talk it through first? A Money Clarity Call is 20–30 minutes, free, and there is no pressure either way.

    Frequently asked questions

    Is it normal to feel anxious about money even when things aren’t that bad?

    Yes. Money anxiety often reflects uncertainty more than the actual numbers. Not knowing what’s in your account is almost always more stressful than knowing — even when the number is uncomfortable. The anxiety usually drops significantly once you have a clear picture, regardless of what it shows.

    How do I stop feeling guilty about spending money on things I enjoy?

    By building spending on things you enjoy into your plan, rather than treating it as something that shouldn’t happen. A fun pot — a fixed monthly amount that’s yours, guilt-free — removes the guilt because the spending is sanctioned. Guilt usually comes from spending outside a plan, not from spending itself.

    Does talking about your finances with a partner always cause arguments?

    Not if it’s approached as a shared problem rather than an audit. Most money arguments between partners are actually about values and priorities, not the numbers themselves. Regular, low-stakes check-ins (a monthly “money date”) tend to work better than annual big conversations — by the time the big conversation arrives, too much has built up.

    Can therapy help with money issues?

    Yes — particularly if the money behaviour is rooted in anxiety, avoidance, or patterns from childhood. Financial therapy is a growing field in the UK, though it’s not widely known. For most people, a combination of practical money management (a clear system) and understanding the emotional drivers is more effective than either alone. You don’t need therapy to sort out your finances — but if avoidance is severe or persistent, it can help to explore what’s underneath it.

    What if I’ve made serious financial mistakes in the past?

    The past is fixed — what happened, happened. What changes is what you do now. Most financial mistakes are recoverable, given time and a system. Debt can be cleared. Credit scores rebuild. Savings can be started from zero at any age. The mistake that can’t be fixed is continuing to avoid the problem because of how you feel about what caused it.


    Related reading: The M&G System: the simple money system that’s hard to get wrong · How to stop impulse buying without hating your life

  • The M&G System: the simple money system that’s hard to get wrong

    The M&G System is a simple, five-step way to take control of your money: get clarity on what’s coming in and going out, give your money a plan, clear the bad debt, build a buffer, then grow it. The trick isn’t any single step — it’s doing them in that order. Skip ahead and money gets harder; follow the sequence and it gets quiet.

    What is the M&G System?

    Most money advice fails for the same reason: it’s too complicated, or it makes you feel like an idiot for not already knowing it. The M&G System is the opposite. It’s five plain steps, done in order, that take you from “I have no idea where my money goes” to “I’ve got a plan and I’m growing it.”

    Here are the five steps:

    1. Get clear. You can’t fix what you can’t see. Step one is simply knowing what’s coming in and what’s going out — no judgement, just the numbers.
    2. Stop the leaks. Build a simple spending plan and plug the quiet drains: the forgotten subscriptions, the “pay in 3” habit, the autopilot spending.
    3. Clear the bad debt. Tackle expensive debt — overdrafts, credit cards, Buy Now Pay Later — with a dated, prioritised plan you actually believe in.
    4. Build the buffer. Get a small emergency fund in place so a surprise bill doesn’t send you back to square one. Open the right account while you’re at it (an ISA first).
    5. Grow. Once the leaks are plugged and the buffer’s there, start putting money to work — calmly, long-term, in low-cost investments.

    Why does the order matter?

    Three reasons.

    It’s sequential. You don’t try to do everything at once. There’s no point investing while a 39% overdraft is eating you alive. The order does the heavy lifting for you.

    It’s small. Each step is something you can start this week, not a six-month life overhaul. Small is what gets done.

    It removes the shame. Money guilt is the enemy, not the tool. The system never asks you to feel bad about where you are — it just asks “what’s the next step?”

    How do I start this week?

    Don’t try to do all five steps today. Just do step one. Open your banking app — yes, the one you’ve been wincing at — and look at the last 30 days. Write down roughly what came in and what went out. That’s it. That’s the whole task.

    Most people feel lighter the moment they actually look. The fog is worse than the facts. Once you can see it, you can start to steer it — and the next step, building a spending plan that actually works, becomes easy.

    Not sure which step you’re on? The free 5-Minute Financial MOT shows you where you stand across all five.

    Want it built around your numbers, with someone in your corner? That’s what the M&G Financial Control Reset is for.

    Two ways to go further

    If you would rather have the whole thing in order instead of one post at a time, that is what the book does.

    Money & Growth 101 — the no-fluff UK guide to clearing debt and building real wealth.

    Prefer to talk it through first? A Money Clarity Call is 20–30 minutes, free, and there is no pressure either way.

    Frequently asked questions

    Do I need to earn a lot for this to work?

    No. The system scales. The steps are the same whether you’re on £24,000 or £64,000 — you just adjust the numbers. Starting small is the point.

    How long does it take to feel in control?

    Most people feel noticeably calmer within the first few weeks — usually as soon as they finish steps one and two and the money stops being a mystery.

    What if I’ve tried budgeting before and failed?

    You’re in good company, and it’s almost never your fault — most budgets fail because they’re too strict or too complicated. The M&G System is deliberately loose and simple, so it survives real life.

    Not sure which step you’re on? The free 5-Minute Financial MOT shows you where you stand across all five.

    Want it built around your numbers, with someone in your corner? That’s what the M&G Financial Control Reset is for.


    Your next step

    If you’d like a plan built around your numbers — with someone in your corner to keep you on track — the M&G Financial Control Reset is a five-session, one-to-one programme, £297 flat fee. Work with me →

    Money & Growth 101 is plain-English personal finance for your 20s and 30s — no jargon, no shame, just a clear next step.

    What is the M&G System?

    A five-step framework for managing money — clarity, a plan, clearing bad debt, building a buffer, then growing it — designed to be followed in order.

    Do I have to do the steps in order?

    Yes, that’s the point. Each step makes the next easier; doing them out of order, like investing before clearing high-interest debt, usually costs you.

    Is the M&G System good for beginners?

    Yes — it’s built so it’s hard to get wrong, with one clear action at each stage.


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