21 Personal Finance Tips

Thursday, January 15, 2009

Category: Personal Finance Tips

With all the financial help and advice available online, it could seem a bit overwhelming. Here are some simple, quick and easy tips you can implement into your lifestyle to save money and be financially secure.

1. Spend less than you earn - Sounds obvious enough, but most people spend more money than they make. Stop spending, especially on credit, and start saving.
2. Pay your bills on time – Again, sounds obvious enough but at last this way you know your bills are all paid and it avoids any late penalties.
3. Set a budget - This is a best way to save money and work out your finances. Set a budget and stick to it. No matter how frugal the budget may seem, this is your first step to financial security.
4. Have an emergency fund - There will always come a time when unforeseen expenses arise whether it’s your dog needing to go to the vet, or your car needing to be fixed. These are usually expenses you don't consider in a ‘normal’ month. Set up an emergency fund for this exact reason. This way you won't find yourself falling short of cash halfway through the month. And better still if you have plenty left over at the end of the year, you can invest it in a high interest savings account.
5. Education is not a waste of money - Education is never a waste of money. Get educated at an early age. If you or your parents cannot afford it, you could consider taking out a student loan or applying for a bursary.
6. Your job is important - Even if you don’t love your job, do it to the best of your ability. Because without your job, you will struggle to pay the bills. If you are unhappy at your current job, look for a new one, but don't burn your bridges. Your job is important, whether you love it or not. Ultimately, it pays the bills.
7. Private schools are expensive - consider sending your children to a state school with good results. It's cheaper, and offers almost the same facilities as its private counterparts. Can you really afford to pay for the extra perks a private education offers? And that’s not just fees – it’s the school uniform, the extracurricular activities, the school trips abroad etc. Your child will be happy either way, but your bank manager will be even happier. Again, there is the option for private school bursaries. Many private schools are registered as charities and therefore have to offer bursaries to retain this status.
8. Ask for a payrise - do you feel you have been working hard all year? Consider approaching your boss and asking him for a raise, especially if you have been working at the company for more than a year. The worst thing that could happen is your boss says no.
9. Make use of your rewards - There are many companies/shops that offer rewards, money off or money back vouchers. Make use of these benefits while you can.
10. Pay off your credit card now or look to do a balance transfer - Credit cards have the highest interest rates. Sure, its convenient, not to mention safer than carrying hordes of cash, but credit cards can spiral, especially if you are using it to pay off other debt. Pay off your card and then cut it up. It's the best thing you can do for yourself.
11. Don't draw money off your credit card - This may seem tempting, especially on those dry days when you are strapped for cash. Drawing money off your credit card makes your purchases expensive, so before you draw cash to entertain your lifestyle today, think about your future.
12. Know how much you are paying a month - Many people are not even sure how much they are paying on their credit cards. Their money simply gets debited from their accounts every month. Make sure you receive and read your bank statements and know what is happening with your money. In that way you will be able to budget and save money.
13. Don't just pay the minimum amount due - Try to put more on your payments every month. Just think of the interest rates, and how happy you will be once the debt is paid off.
14. Buy a used car, or take the bus or better still walk  - As many of us know but refuse to admit, cars are not investments, no matter how you look at it. If you really need a car, opt for a second hand one. You can get really good deals on used cars, all you have to do is look around. Otherwise, save your money and the environment and take a bus to work or walk.
15. Be patient - Especially when wanting fancy new gadgets. Chances are in a couple of months the value would have dropped so much, you can buy it for half the original price.
16. Buy airline tickets in advance - The further in advance you buy your tickets, the cheaper they are. Try not to buy tickets at the last minute, unless it's a last minute arrangement.
17. Stay in - Make your own meals and stay in. Cooking for yourself or your family not only helps maintain a wholesome family environment, it also saves you money. And if possible, try to cook enough food and pack it in as lunch the following day. It also saves you from having to buy lunch everyday.
18. Walk/cycle if you can - If you can walk or cycle to work, then go for it. Not only is it healthier, it saves you money as well.  If you don’t have a bike but want to find a cost efficient way to own one, look into the Government’s Cycle to Work initiative. You could get a tax free loan from your employer to cover the cost of a bike and accessories, provided you will be using your bike for transport to work. 
19. Invest in something worthwhile - Making an investment in your future is never a bad idea. Investing your money in a home or business can reap the rewards in the future. Alternatively, you could even look to invest in art. The ‘Own Art’ scheme makes art affordable with an interest free loan of up to £2,000. Invest wisely and you investment could reap huge rewards.
20. Insurance and medical aid is your friend - It may seem unnecessary, but house, car and medical insurance is worthwhile, and a huge financial burden lifted off your shoulders should something unfortunate happen. Look around for the most affordable deals.
21. Enjoy - Life is meant to be enjoyed. There is really no point in going through life worrying about money, and not enjoying it. There are more important things like health, family and happiness. Make sure you incorporate all these into your life.