Finance can be a very scary world, there is lots of jargon and it can be quite daunting. Learning Economy can really help you to become more financially clued up and stable in your personal and professional life.
There are certain skills which every needs to know in order to improve themselves and stay savvy in the finance world!
From eating in and cooking for yourself to bargain hunting and smartly investing your money, there are many things you can do you help you become more financially aware, here are 7 financial skills which you should know!
Budgeting it key to staying financially stable, knowing how much money you’ve got to spend any sticking to that is key.
If you have a month where there are a lot of outgoings, you may need to budget in other areas such as the food shop or entertainment allowance. Being able to do this is vital to ensuring you make it until the next paycheck arrives.
Need Vs. Wants
You may want the new trainers, but do you need them right now? This also boils down to budgeting and rationally thinking, can you afford them right now. With high-cost items which you’d like, try to save up for them over the course of a few weeks or months, we promise they’ll be worth the wait.
Planning ahead is key to understanding your finances. In term of food shopping, you can cut back on waste and reduce costs if you know exactly what you’re eating for the next week and buy only the ingredients you need, then you’ll be able to cut costs.
If you plan what you’re doing for the month ahead, you’ll be able to budget for each day/night/event and not end up with no money at the end of the month and being unable to attend certain activities.
Building Your Credit Rating
Your credit rating is key when you’re trying to get a mortgage, car or loan. It’s extremely important that you know how to build this, so that when you need it your credit score is good! This could improve interest rates and be the deciding factor in companies giving you credit.
Managing Credit Cards
Credit cards can be great if used correctly, however, if misused they can become very scary.
You need to understand how to use them, your personal limits and the process when you start to fall into the red!
Sometimes the best way to increase your capital is to invest your money and watch it grow. Understanding which industries are safest, what ROI’s mean and how buy-back deals work. Some people make their money solely through investing and reinvesting, living off the return this investment gives them, so it can be extremely profitable.
Know Your Rights
As a consumer, you have a lot of protection rights when it comes to credit and debt matters. There are several sites and governmental advisors to can clearly explain to you your rights, be clear on these when purchasing anything to ensure you are covered and so you don’t get stung if something does go wrong.