Few pointers on how to manage our finances

British nationals generally do not do well in financial literary examinations though they are not entirely to blame.

14:13 21 August 2014

The school system here do not have much to offer about financial subjects, thus parents do not have much to share to their children when it comes to proper spending of their money, saving, much more investing.

 

Hopefully the following snippets of financial wisdom will help you travel through the simple and complicated financial world more smoothly.

 

• Automated savings

 

Have your pay check automatically deducted with a specific amount that will go to a savings or retirement account.  You will not even have to exert an effort to save and you do not run the risk of using the money for another purpose.  Employers sometimes initiate this system as well as some banks.

 

• Lessen your debts

 

Depending on the purpose, taking on a loan can either be helpful or a curse.  Loans used for university education or buying a house or a car are definitely good because it get us to acquire something which might otherwise be out of reach for some individuals.  However when payments are not updated, it could spell trouble.

 

• Monitor your credit rating.

 

These days credit scores sums up your financial credibility.  This will affect the interest rate that will be charged on your loans.  It is critical to have your free annual credit report from the following site:  https://www.noddle.co.uk.  Check it out for accuracy and if you find some errors you will have to have them corrected.

 

• Be prepared for tough days

 

British nationals do not care much for the getting the right insurance perhaps because of the general feeling of optimism.  Nobody thinks much of being in such a bad situation that will require insurance.  However, having the right type of insurance such as health, life, renters, disability, or homeowners insurance can make a difference between survival and down and out misery during an unfortunate event.  

 

• Beware of scam artists

 

Nowadays, thieves are not only after your properties but they can steal your identity as well.  To avoid the risk of being a casualty of this scam, you should review your account statements monthly to check for charges that seem fraudulent.  Notify the bank at once so they can change the account numbers and your cards.