Growth of economy: expecting stability shortly

Finances are tricky since there are so many factors to evaluate, but there are some basics than can tell you how you’re doing.

07:07 04 August 2013

Recent news about the growth of the economy has brought a little relief to those who have been watching with a wary eye. There is still a way to go and the progress has been termed “half” of what it ought to be, but with the current market the progress shows that the UK is on the right track.

 

Critics of the progress compare it to the pre-recession numbers, but each economic situation is slightly different and requires unique handling, just like our own personal finances.

One person’s finances cannot be adequately compared with someone else’s due to the nature of economics. There are, however, some basics which can tell anyone how their finances are doing. 

 

• Lack of surplus. Regardless of the past state of your finances, if you find that you don’t have a surplus at the end of the month, you’re in a tight financial situation. It won’t matter if you have the best job, or the worst. The end result is the same. 

 

• Living beyond means. At some point in life, we all may be guilty of trying to give the impression that our finances are better off than they are in reality. This can lead to purchasing things on credit, obtaining various loans, and essentially spending more than what is available in the budget. 

 

• Savings accounts are a typically a good indicator for your finances. If you’re doing well and are able to pay the bills, and you still have extra to deposit into a savings account it means that you are on the right track for improving your finances. 

 

• Temptation to try and invest with the hope of gaining a fast profit means that you might be getting by, but you’re one step away from a disaster. Try to find ways to help your finances that won’t have the potential to harm your finances.