Coming out of this pandemic and beyond, take these everyday finance tips, and change the way you think about money.
1- Set budgets
This is the beginning of any personal money management routine. With the realisation that governments can stop the world and your ability to earn, it is important to set budgets for savings, expenses and even a budgeted amount to enjoy life with.
2- Buy experiences not things
Studies show that experiences, not things lead to more happiness in life, so take a trip or a dance class and make memories, rather than buy another gadget that will ultimately be forgotten.
3- Go cash
Instead of credit cards or a loan, stick to cash or a debit card, that way you wont be tempted to buy things that you can’t afford, leading to unnecessary debt.
4- Set money goals
Write down actual dates of how much money you will save and by which date. Make sure to do the same thing for debts, when you intend to pay the debt off or make a payment towards it.
5- Keep a separate savings account
Don’t think just because you have money left in your current account, that is the same as actual savings! Keep a separate account for savings, as you will undoubtedly spend the current account money.
6- Make a money calendar
Keep track of your outgoings with a money calendar. Write inside the calendar date window known bills such as mortgage payments and direct debits, this helps you to know what is coming up and on which date, allowing you to plan accordingly.
7- Take daily money audits
Take at least 5 minutes per day to oversee your money situation, from current debts, payments and income, this gives you a better perspective on where you are now, and helps you stay on track in reaching your financial goals.
8- Check fees
Fees can eat into your profits when making money and fees can also harm your financial position when paying debts. So when it comes to credit cards, loans and even simple bank accounts, check the fees charged. Negotiate when you can for better fees, or simply switch to other more favourable providers.
9- Understand rates
Learn the difference between rates and how they can make a difference to your financial health. From compound interest to APR, take the time to understand how rates affect you. Again, negotiate when you can or find a better rate provider for your current situation.
10- Enjoy yourself
Don’t let money become a burden, when you hit goals, pay off debts or make positive changes to your finances, treat yourself…..Just not too much 🙂
