Be that person who has their financial house in order.
What does it take to be good with your money? You don’t need a qualification or even lots of experience. If you want to be cool when it comes to cash then all it takes is a commitment to some financial housekeeping.
Take responsibility for what’s yours
Good financial housekeeping requires the right attitude. If you’ve got debts they’re yours to clear; if you’re setting savings goals then it’s going to be up to you alone to meet them. Those with financial smarts always begin from the perspective of being responsible for their own financial destiny, no matter where they’re starting out from, whether they need to borrow money or have plenty saved..
Integrate it into your lifestyle
Financial housekeeping isn’t something that you can just do once a week and then forget about the rest of the time – well, it is but if you do that then you won’t be that good at it. The really smart people know that it makes sense to integrate financial housekeeping into all your daily money decisions, from which option to take at lunch, to the calculations involved in agreeing to a holiday that way you can avoid getting into bad habits like using doorstep cash loans.
Learn how to do it on the go
Gone are the days when budgeting had to be done with pen and paper or keeping an eye on your taxes was an annual event. Today, we have the power to do everything on the go and embracing that is a really smart move for those who want to be more financially savvy. Budgeting apps and personal finance software can help you to get perspective on what you spend and save – and most of these are available as a mobile app or accessible via the mobile internet. When you learn how to handle your finances on the go it makes financial housekeeping much easier to do.
Prioritise putting money aside
As a society we generally don’t have enough cash put aside in savings, whether that’s for the next holiday or our own old age. So, when you start to approach financial housekeeping make savings a priority, whether you’re 25 or 52. If we start to save early in life then it becomes a habit, one that we can pass on to younger generations, and something that we’re much more likely to do effortlessly as the years go by.
Quick financial housekeeping tips
- Pay your bills on time – it’s always easier to stay on top of bills if you don’t let them build up
- Set up direct debits – you won’t forget to make payments that way
- Get into the habit of saving extra cash – if you get a windfall, inheritance or pay rise, put it aside
- Pay off your debts first – right now, you’ll always pay more interest on debts than you’ll earn on savings so it’s worth clearing those obligations first
- Simplify your finances – consolidate loans so that you have just one repayment each month, close down old cards or bank accounts and budget electronically
- Keep an eye on your credit score – this will be crucial to ensuring you have financial freedom in the future and, if it’s not great right now, there’s a lot you could do to improve it.