From a very young age, it’s so important that you learn how to manage your finances. Having money is a really big responsibility. It’s sad that alot of parents and schools fail to provide young people with the knowledge they need to learn how to properly manage their finances. It’s obviously not something you have to worry about as a young adult, but as soon as you get a job you need to know how to do it.
Growing up I was always taught to save money and how to budget money. I always saw my parents working hard at saving and making wise decisions when buying new things. And it really helped me to learn the value of money and how to correctly spend and save it as a I got older.
For todays post, I want to talk about effectively learning how to manage your finances. And I want to share some of the knowledge I have on this topic too. At the end of the post, let me know some of the advice and tips you learnt growing up too.
OPEN A SAVINGS ACCOUNT
One of the very first things I did as a young adult was open a savings account. I didn’t ever have any money in there, but its something that I utilise now that I am older. When my parents took me to the bank to open it, I was so confused at why I was doing it. But, it taught me a really valuable lesson in saving.
There are alot of different savings accounts out there, so I wont be going into detail about each one. But, do your own research. Have a look and see which kind of savings account would be the most beneficial to you and your situation. Savings accounts are also a great way to make interest on your money too. So, see it as an investment opportunity.
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As you start to make money, set budgeting strategies with your money. Put money aside for food, bills and anything else you know you need to pay. And see the rest as your disposable income. This is the money you can use for the month for leisure activities.
There are some really good banks that provide special savings cards you could look to get too. I have one called a Monzo card. And I put a budget of money into it each month, and as soon as its gone then its gone. And it really helps me to limit my spending.
If you know that you have bills due at the end of the month, make sure you have enough in your savings for them. But also make sure that you are buying responsibly throughout the month. Don’t make any expensive transactions if you know you only have money for your bills. It sounds like common sense, but alot of people make this mistake and get caught up in the moment.
There would be nothing worse than to have that heart sinking feeling, knowing you don’t have any money left at the end of the month. Buying responsibly doesn’t mean that you can’t buy anything or enjoy buying. It just means that you have to be careful with how much you spend.
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LIMIT CREDIT CARD USEAGE
Credit cards are great for when you need to buy something big. But they can also be a curse too. So many people get carried away with buying things with a credit card, and often forget they have to pay them back with interest. Data shows that on average British people brought nearly £10,000 worth of debit into 2021. Which is such a scary statistic!
Be careful though. Remember that alot of the time credit card companies have really high interest and you have to pay that back on top of what you have borrowed. Taking out zero % interest credit cards are a great way to be smart with your money. Also make sure you pay back what you borrowed quickly too!
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How have you learnt to manage your finances? Do you spend responsibly?
This post is not just about me giving advice about how to manage your finances, its teaching me too. As I go into the world of home owning, it’s important that I myself learn about this too. I hope you found this post helpful!
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