Most of us never received a formal financial education in school so when it comes to learning about money we usually have to find out everything through trial and error. Unfortunately, this is not always the best way to pick up good money habits. You can easily leave school or university feeling pretty clueless about the world of finance and what it all means for you.
Here is some good money advice that is always worth hearing and taking on board:
It’s all about balance
One of the best skills you can have when it comes to money is learning how to have self-control. Think back to when you were a kid, did your parents give you an allowance? If they did, how long did it last you? Are you someone who feels like their money is burning a hole in their pocket and it has to be spent? They key to having your finances in order is learning to enjoy delayed gratification.
Sure, you could run out and get all that you want on credit but that really wouldn’t be the best thing to do. You may find yourself in a ton of debt that you struggle to pay back. Get yourself used to saving for things and waiting a little longer before you spend to make sure you can really afford it.
Know where your money goes
How can you make sure you live within your means if you don’t know what you are spending your money on? You need to create a budget that details what your expenses are before you can see if they are exceeding your income. Once you have some financial clarity you might find that you actually don’t need to cut back as much as you thought, it’s more a case of managing your money better.
Pay yourself first
No, this doesn’t mean that you get to have a shopping spree before you pay your bills! As soon as you get paid move a proportion of your income into a separate saving account so you can start to build a decent emergency fund. The earlier you start saving, the better. Ideally, you want to have at least 3 months salary in savings, just in case of any unforeseen circumstances. You should also try to save a different amount each month for your retirement. Starting early will give you the ability to save a smaller amount every month, the longer you leave it the more you will eventually have to save.
You also need to make sure your money is easy to manage. Get your own Monese account now. When you sign up via the Monese app you receive a UK sort code and account number, which your employer uses to pay you, direct into your Monese account. You can also send and receive money in real-time, no waiting. You can make currency transfers for only 0.5% above the mid-market rate; which is one of the best rates available. Using our app you can also make payments, check your up-to-date balance, review your transactions, get paid to invite friends – plus much more!
Main photo credit: kenteegardin