Many of us struggle with financial management, don’t we? Despite this, most of us prefer to read about it online than seek financial assistance from others because personal finance is such a taboo subject.
But if you look up the internet and read a lot of finance books and blogs, you'll come across a lot of personal finance advice.
This can make it appear to be a huge, daunting, and difficult subject, but trust us, it isn't. Check out these 4 ways how financial literacy can help you to achieve Financial Freedom.
Unfortunately, most schools and colleges do not require students to study personal finance.
Many young adults in our country are unaware of how to handle their money, get loans, or stay out of debt due to a lack of fundamental financial education.
So keep in mind - It won’t be easy. It will take time to develop these new habits if you aren't already performing them but they’re fruitful.
You know what the best part is? In today’s time, you’ve got apps for everything - from budgeting to automating your investments.
Everything has been simplified and made easier for you to save time.
However, there are some smart money management and financial education tips that you should remember if you want to have greater control over your money and enjoy a far better financial life.
1. Spend less than you make
You may find it tough to get ahead no matter how much or how little you are paid if you spend more than you make.
Learn self-control and how to savor, what you already have. Timely spending reduction can save you a lot of money.
2. Maintain a budget
A budget will show you exactly where your money is being spent. You may choose a weekly, fortnightly, or monthly budget depending on when you get paid.
No matter how much money you make in a year, you need a budget.
3. Use the 50/30/20 Rule as a guideline
Consider implementing the 50/30/20 rule if you're having trouble budgeting and saving. The objective is to allocate your earnings as follows:
50% on necessities including groceries, housing, utilities, and health insurance.
30% on desires such as eating out, shopping, and hobbies.
20% of your income should go toward savings, such as an emergency fund, a college fund, or a retirement plan.
4. Avoid Debt and Educate Yourself on Credit
Avoid getting into debt. If you have any debts, clear them all as soon as possible.
Taking a loan can make sense in a few cases. It can assist you in purchasing a home, a car, or managing your medical expenditures when used properly.
But when credit is used recklessly, it can lead to a pile of debt that robs you of the future you desire. So there's no need to rush.
Whatever you do, be sure you have a thorough understanding of how credit works.
5. Have a savings strategy in place
Set aside a minimum of 5-10% percent of your salary for savings if you want to increase your savings.
If you have money left over after contributing to super and a savings account, you might want to consider investing it in something else.
Time is crucial when it comes to investing.
Compound interest may completely transform your financial situation over time, so start investing today and reap the benefits later.
So, now is the time to put your money to work for you.
7. Know what you're investing in
Do not become involved in investments that you are unfamiliar with. There are so many investing instruments out there today but understand what will reap you the most benefits.
A financial consultant can assist you in determining which investment options are best for you.
Also, read read read. Educate yourself as much as you can about finance and money management.
8. Examine your insurance policy
It is critical to have adequate insurance to safeguard your family and income in case of death, accident or disease.
9. Maintain good records
You're probably not claiming all of your eligible income tax deductions and credits if you don't keep good financial records.
Create a method and stick to it throughout the year. It'll come in handy when it's time to file your taxes.
10. Seek financial assistance
Are you one of those people who lack the time or the desire to properly manage their finances?
Many people find it difficult to stay up with investing possibilities and comprehend the risks since they are preoccupied with work and family.
If so, consult a financial advisor. He/She can assist you in achieving your objectives.
11. Use Different Apps to Stay Organized, Make your Budget and Invest
As we told you earlier, there are different apps in the market today to help you with most of the stuff for financial management and give advice.
You should definitely use them to save time, invest smartly and make savings easy.
There you have it, the key to amping up your money matters. Why not start your savings and investment journey with the Jar app today?