During your days at College or University it can seem impossible to think of a time when your bank balance is zeros and not stuck in the red. Even after finishing your degree and working a job you often end up working your nose to the grindstone, struggling to make ends meet.
The thought of financial safety is something that appeals to absolutely everyone, for obvious reasons. No one wants to conscious of their spending forever. But it doesn’t take winning the lottery or inheriting large sums of money to enjoy life the right way.
Here are some tips to ensure your own financial security, and ultimately, freedom:
Make a complete list of everything you spend your money on, down to the smallest of details. This will help you work out why you’re £100 short after the weekend or why your card was declined when trying to purchase a new jumper.
Include things such as your utilities, groceries, any insurance policies and even that meal you took your wife out to last Tuesday. Make sure to split your outgoings correctly so that you’re not dipping into one to feed the other.
Example: £1,500 Paycheck
£100 Rainy Day Fund
This would allow you to have the essentials covered no matter what, even if have two weekends a month at home.
Most of the biggest success stories started from the bottom – with small investments. Starting with a small, risk free investment that you know you can afford, and slowly working your way up. It’s worth doing some reading in your spare time to find the latest investment tips. Then you can go to a High Street foreign exchange company like ETX Capital to make money.
Forex trading companies generally have app for either or both iOS and Android, allowing you to keep an eye on your numbers from anywhere in the world.
Simple self-control can go a long way when it comes to your finances. Overspending on your trips to the local supermarket can be avoided by taking only the amount you need to spend. Likewise, an expensive night out can be prevented by setting a limit on what you eat and drink or simply taking only a certain amount of cash with you.
It doesn’t have to be boring and even if it sounds a little dull to you – one less meal out a month is a lot less stressful than being broke.
Avoid Credit Cards
Unless it is an emergency (new car, bathroom’s flooded) there’s no positive reason to get yourself into credit card debt. It’s the start of a downward spiral to have a seemingly unlimited amount of money to tap into every time you see a bigger flat screen TV or the latest iPhone in the shop window.
Credit cards can take forever to pay off even after they’ve been thrown away. If you do have one, make sure it’s paid in full and on time every single month. Never get in the habit of paying the minimum amount.
Most businesses will have a pension scheme that both you and your employee pay into. Requiring a pension may seem a long way away for some but not many people want to be working when they’re 70+. Don’t be shy to speak to your employer about the company’s pension scheme or even discuss with your bank as they may be able to offer you advice.
Don’t Stay in a Dead End Job
Waiting tables or stacking shelves may seem like a simply job whilst your studying but if you can’t see yourself further up the career ladder shortly after, it’s worth moving on. Always have in your head the next step of your career and don’t let it go stagnant.
If things ever look stale look around at what other opportunities are available to you. Even speak to your employer about possible opportunities on the horizon or a payrise. A good employer always wants to improve the quality of its staff so your boss won’t have any issue in asking about career advancement.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.