Importance of looking after your money
Looking after money
The old saying is true that money makes the world go round.
As we start the new year, it’s that time of the year that we are likely to have spent too much during the holiday celebrations. But it is also as good a time as any to start afresh on our finances.
The importance of personal finance management and why we need to discuss money at home is what this blog will focus on.
Still not sure why we teach Maths in schools but not finance or money management.
Some key factors to consider
Managing money is about self control or delayed gratification. Wait until you can afford things, if you pay using your credit card, then better to pay off your credit cards immediately once you have the bill. Paying interest is a waste of hard earned money. It just eats into what we otherwise should be using for other things.
Better to manage your own money, don’t let others do it for you. The best way to do that is through understanding the basics of finance and money management. It takes time, but never let anyone tell you it is difficult. It’s like riding a bike, once you get your balance, you are off on your way.
You may be interested in my book on personal finance
Seven Easy Steps to Financial Fitness https://www.amazon.co.uk/dp/B00BQYVKC6/ref=cm_sw_r_cp_tai_TK6PZ9BEM9HB255DA1CN
Budget to know where your money goes. It is better to know what you are spending your money on, so record all transactions to get an idea. If you are into spreadsheets, you are in luck, but if not, there are applications to help you or just record your transactions in a note book. Once you match this against your income, look for ways of reducing some of the money you spend. This will help in the next step.
You may be interested in
Savings can be fun
Start putting money aside for the future. Some people call this emergency funding, I believe this is freedom money. This money gives you confidence to make choices in the future. It is tough to save, but if you cut out what is ok to have and focus on the essentials for awhile, you will get used to seeing your money grow. There are apps that allow you to save from £1 a week, they do penny round ups etc. This makes savings easy and so much fun. If you have a smart phone, then apps like Moneybox, Plumb and many more on personal finance can help.
Money buys freedom
Plan for your retirement, again, this is putting money aside for the future. If you have the opportunity read the book ‘The richest man in Babylon’. Or just listen to the summary on YouTube
If after listening to the summary you want the real book, then the full book is here too
https://www.investopedia.com/best-finance-books-for-teens-5095590
Money or lack of it can cause a lot of stress, so better to find ways of managing it. We have to get used to it.
If we see saving money today as the right to buy ourselves freedom in the future, then it is worth doing today.
You may be interested in
https://www.enterprisedoctors.com/money-management-crisis-during-the-pandemic/
