It’s a shame that proper financial advice isn’t taught to kids in school. If it was, perhaps there would be fewer people struggling with debts and high expenses that are simply unsustainable. The reality of modern life is that good financial health can help you navigate through difficult times, and set yourself up for the years ahead. Here are a few ideas that can help you manage your money, make the most of your skills, and future-proof your finances.
OK, so let’s start with the most obvious point: stay on top of your spending. Sure, the idea of creating a budget – and sticking to it – isn’t the most glamorous, rock and roll way of living your life. But the reality is that the earlier you start to be careful with your money, the more you will have in the future. It’s that simple. Overspending is easy in this day and age, but learning to be prudent and always looking for the best deal can help you avoid unnecessary debts and hardship in the years to come.
Some things are worth spending on, however. If you invest in yourself it will often pay out. For example, who do you think has the higher chance of earning more money? The person that just about scrapes through an engineering degree, or the person that aces their exams and goes on to do a Masters in Engineering Management? It’s all about playing the odds and making sure the dice are loaded in your favour. And the earlier you get started, and the sooner you get that high paid job, the more you will earn over your entire career.
According to financial advice experts, every household should have an emergency fund that is equal to six months of their household income. Sounds a lot, right? But when you think of the precarious position that most people are in, it’s easy to see how your finances can go from hero to zero very quickly if you don’t have an emergency fund. What if you lose your job? What if your car breaks down and you have to buy a replacement? What if your boiler blows up? All of these issues happen often to families all over the world on a regular basis. And unless you have access to savings when you need it, the reality is that debts can mount and your income will suffer.
Finally, the old chestnut of building a retirement fund. When you are young and carefree, your senior years seem a long way away – so what’s the point in investing in your retirement pot when you could be blowing your money on nights out and fun times? The truth is that the earlier you start saving for retirement, the more time your money has to grow. And if you want to have a comfortable life in the future, you need to start thinking about that future now.
Protecting your finances can be complicated, but in truth, the basics are very simple to grasp. Follow these rules, and you should be able to enjoy life to its fullest, without the stress and worry of having debts, or concerns about your future.