Good Advice on Money Matters

by Mike on March 8, 2014

Good Advice on Money Matters

If I could go back in time and give some advice to my younger self on money, I would have quite a lot to say. I was rather clueless and didn’t really know what to do with my finances until relatively recently.

Save yourself the drama and the heartache and forward these helpful financial tips to the youngsters today.

Saving Money

Save money regularly even if you think you can’t because of your expenses.  At the end of the month discipline yourself put something into your own savings account, tin or piggy bank.   Try putting in a small amount at first and add more every month.  The more you get used to it, the better it will be.  In the long run you will start building a habit that will make you conscious on how much you have to spend and what you can do to save. In addition, what you set aside can be used in case of emergencies.   When you really are down and out you have got a safety blanket, even if it is just a tiny one. This will take away the number one financial worry that most adults have and give you a bit more flexibility in the future when it comes to thinking about buying a house or vehicle.

If you know that you are a bad saver then set up a regular savings plan or sign up to the fifty two week money saving challenge for a fun and flexible way to start saving.

Making Money

Wherever possible try and make money rather than spend it. This sounds obvious but you can have a lot of fun making money rather than spending it.  This will also give you a much better option when you have enough income to spend on better things like vacations and buying a product with more value.

Here are some ideas to get you started in looking for ways to add additional income sources: Sell old clothes on Ebay. If you haven’t worn an item for six months, then better make some space on your closet and sell it. On weekends, you can also run a yard sale or getting a stall at a farmer’s market or a car booth rather than spend your time shopping in the mall. If you are good in doing crafts, you can invest in tools and create products that you can sell.

Good Advice on Money MattersCredit and Loans

Having a credit card with a good credit score is really important in today’s financial climate. Those individuals with no credit cards are treated with almost as much suspicion as those who have bad credit scores or a history of defaulting on agreed repayment terms. Make sure you are a responsible cardholder by not overspending or going beyond your financial limits. At the end of the month, pay off the amount in full keeping your credit rating high, your account open and you payables at the minimum..

Using your cash rather than you credit is better option as well.  Try to avoid borrowing money as much as possible.  However when something comes up like you need to do major repairs to your house after a disaster then an option would be to get a good deal on your mortgage and/or homeowner loanThis is to ensure that you don’t default on payments in the future and that you aren’t paying through the nose in arrangement fees or interest rates.

 

***Photos thanks to 401(K) 2012 and Mike Linksvayer of Flickr***

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