Friday, June 16, 2017

The Super Savvy Guide To Personal Finances

Think of all those years ago when you were in school – can you see your younger self studying hard like a model student? Yep, but what you can’t see are the life skills that will help you in later life. Fast forward a decade or so, and all the maths and science facts don’t come in handy when your finances are going down the drain.

The truth is that the education system doesn’t help young people learn about life skills, the ones that you can’t find in a textbook. As a result, even the cleverest people are pretty dumb when it comes to their finances. It's obvious that no one wants to suffocate under a mountain of debt, so you need to find a solution.

Thankfully, there are several ways to get savvy and stay one step ahead. All you have to do is continue reading.

Reach Out For Help

Later on, this post is going to focus on your responsibility as an adult to maintain your finances. But, it’s worth noting that this isn’t a path which you should walk alone. Sure, it’s your money and you can do with it as you please. Still, there is no reason not to reach out to people with knowledge and experience. For one thing, you’re novice who is going to make mistakes. In the field of finance, one error is enough to last a lifetime. Plus, the Web is full of people like Michael Banks and experts that want to help. All you have to do is take the time to reach out to them and listen to their advice. It could make all of the difference.

Stick To The Basics

Beginners in any field always assume that the best in the business do things another way. They do, but not in the way you would think. Simply put, they adhere to the basic rules of finance and always make decisions with them in mind. There are no secret tricks or Hail Mary passes because that isn’t the percentage play. So, they do things like spending less money than they earn to stay in the black. And, they squirrel money away so that they have a safety net in case of a rainy day. But, the greatest play they make is to adapt with the time. There isn’t a one size fit all policy, so you have to evolve with your finances.

Make Wise Investments

The biggest issue with money is that there is never enough to go around. If there were, you wouldn’t be here reading this post. The simple solution is to make more of it, but money doesn’t grow on trees. So, what is the middle ground? The center ground is to take some of your excess money and invest it invaluable commodities. A sound investment will make you money while you sleep and supplement your current income. A great one could make you enough that you never have to work again. Just look at Warren Buffett if you’re skeptical. There is no point in money sitting in a bank account accruing nominal interest. Instead, find a lane and take a calculated risk.

Be Alert

People’s finances plunge into the red for one fundamental reason: they lose track. Ask anyone you know how much debt they are in, or the rate of interest on their credit card and they will struggle for an answer. Ask them who won the soccer World Cup in 1958, or which celebrity couple has just split and they’ll have a reply, though. The sad reality is that the average person isn’t alert enough when it comes to financial issues. If you’re one of these people, it’s time to study. Call your creditors and ask them for any info, and then use it to plan your next move. Or, consider consolidating debts into one payment. That way, there is only one arrear to juggle at the end of each month.

Plan Ahead

Staying in the present is a big part of maintaining healthy finances. After all, anything can happen if you take your eye off the ball. Still, it’s vital that you glance in the future’s direction once in awhile. Quite simply, personal finances are a long-term game. It doesn’t matter whether you have a grasp on them now because it is how you fair at the end of a day's play that counts. With that in mind, try and stay ahead of the curve. If you see something coming, don’t be afraid to check it out and see if it’s a viable option. Also, don’t be scared to scrimp and save in the short-term for better traction later on in life.

Don’t Dismiss Options

There are certain techniques that plenty of people rule out for one reason or another. A credit card is a perfect example. Because you are scared, the idea of using a small piece of plastic to regulate your finances seems foolhardy. In fact, ‘seems’ is an understatement as you may have the horror stories to back it up. It’s true that card companies are the reason why a lot of people that find themselves in debt. However, they aren’t blameless. Without sounding crass, these people just don’t understand the dynamics of a credit card, which is why it bites them on the ass every month. As long as you’re savvy, there is no need to tear out your hair. The trick is to pay off the full amount each month unless there is a promotion. If the card has 0% APR for 12 months, there is no need to rush. Just make sure it’s paid off by the deadline, or transfer the balance to another card. What you should never do is rule out a legitimate tactic just because you have heard some wild rumours. As always, plenty of due diligence is needed before you make any decision. Otherwise, the risks are huge and not worth taking regardless of the opportunity, or lack thereof.

Hopefully, these tips will help you when you need them most.

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