5 Ways to Be Financially Savvy

 Hey Cats, 

Taking control of your finances gives you the opportunity to do what you want in life. From buying your own home to travelling the world, being financially smart puts you a step ahead. To get a head-start, take a look at these five ways to be financially savvy:

1. Understand your finances

When it comes to financial matters, there is lots to learn. Knowing how banks and creditors calculate the interest you owe, learning what the eligibility criteria for a mortgage is or finding out how your tax liability is calculated is essential if you want to take control of your money. By learning more, you can avoid unmanageable debt and make the safest investments.

2. Consider every aspect of a purchase

When you’re buying something new, it’s easy to only focus on the initial outlay. However, most purchases involve on-going costs too. If you can afford to buy an Aston Martin, for example, ask yourself, how much will it cost to insure and what is the cost of an Aston Martin service? Similarly, if you’re purchasing a house, find out how much it will cost to run and maintain. By considering every aspect of a potential purchase, you’ll be able to determine whether it’s affordable for you.

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3. Create a budget

Living with a budget doesn’t mean missing out on doing fun things or only spending money on basic essentials. It simply means that you have a handle on your finances and you’re taking a proactive approach to hitting your life goals. When you know how much you have to spend, save and splurge, you can enjoy treating yourself to luxuries once in a while.

4. Aim to be debt-free

Most people have some sort of debt, but this doesn’t mean you can simply ignore it. Some types of debt, like credit cards and payday loans, can quickly become unmanageable. Making paying off your debts a top priority and you’ll be amazed at the financial freedom it offers. Typically, paying off your highest interest debts first is the most sensible plan, but you can access bespoke debt advice from a number of organisations.

5. Set realistic goals

Some financial goals will take a while to achieve, so set smaller targets to hit in the meantime. If you want to save £20,000, for example, make every £5,000 a goal. Reward yourself when you achieve these goals and you’ll stay motivated and determined to achieve your objectives. Whether you’re saving £100 a month or £10, you’re a step closer to living your dream.

Learn More About Your Money

Sadly, schools and colleges don’t routinely teach students about money management. This means that most of us have little knowledge of financial matters by the time we hit 18. If you want to take control of your money, it’s never too late to start learning. By taking the opportunity to learn more about handling your finances, you’ll have the knowledge you need to make your money work for you.

What are your tips?


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