Are You On Top Of Your Finances?

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1 Oct. 2018. Finances are one of the biggest topics to speak about, and this is because there are so many different directions that it can go in, and it can affect you and your circumstances in so many different ways. One of the biggest worries in anyone’s life other than their health, is money. Money can give you so much or so little, and the opportunities that it is able to present you with are huge.

Everyone dreams of having the financial freedom to do with what they please. They can afford to go away and treat themselves and their family without even having to think about it. They can buy that nice car and eat out in the fancy restaurants, and not bat an eyelid. But unfortunately, a life like this isn’t possible for everyone. People may end up working for their whole lives for this exact moment, only to miss out because it just wasn’t going to work out for them.

A big part that comes into this, is the way that you manage your own finances. Now of course, the job you have and the way you bring in an income also makes a difference, but you can have a very well paid job, and still lose it all because you were an overspender and got caught up in a life of luxury, and now your bank account has been drained; it’s that simple.

As a child, we often hear our parents tell us about the importance of being careful with money and saving up so that we can buy nice things, but you will never truly comprehend the importance of this until you reach adult life and are faced with all of the financial pressure. As soon as you become an adult you see just how expensive the world really is. There are bills around every corner, and as frustrating as this is. It’s how the world works and will most likely always be the case, so all you can learn to do, is accept this, and move on.

As long as you have a good head screwed onto your shoulders, there is no reason you can’t make the most out of what you have, regardless of what your circumstances may be. There are always options out there, so figure out what works best for you, and run with it.

Here are a few ideas and examples of how you can stay on top of your finances. Think of this as a trial and error process – what may work for someone, may not work or someone else, so it’s about finding what’s right for you.

Opening a savings account

Savings accounts are a simple way to always have some kind of money left to tap into if need be. You can use it as a way of saving up for fun things like a holiday or spending money when you want to treat yourself, or you can keep it as an emergency fund if ever you require one. Anyone can have a savings account, it really isn’t anything special, it all comes down to how you use it and how much you put into it. The best thing to do is decide on a specific amount every month, and set up a direct debit that will automatically take this number out of your main account once a month.

This way, you don’t have to remember to do anything, and if anything – you forget it even exists which is even better, because then you aren’t tempted to keep checking the balance and using it because you know it’s there. Instead, you will just gradually accumulate a nice number that will be waiting for you when you deem fit to use it.

Dealing with bad credit

Most people will all have to experience going through a phase of bad credit. Essentially it means that you haven’t been as responsible as you could have been with your money, and as a result of this, you are now marked down as having a bad credit score. Fortunately, this can change with time and you can prove yourself and turn it good again, but this all depends on how you go about it. When you do have a bad credit score, there are often a lot fewer things that you will be entitled to as companies are more wary of your circumstances and judge you solely off this.

Having said that, there are companies out there that pride themselves on helping any individual – struggling or not, which can cater to your various needs with more understanding. So if for example you want to take out a credit card – you will certainly be turned down by places depending on who you go to because of your bad credit, but there is such a thing as no credit credit cards, which means that they don’t focus on your previous history. They take you on like any other customer, and then figure out the best way to manage you and your spending needs.

Get a professional opinion

If you still feel overwhelmed and aren’t sure what the best option for you is, then you may benefit from talking to a financial advisor about everything. This is someone that knows all there is to know about finance, and they can give you their professional opinion about how to manage what you have, and even save money along the way. All you need to do is make an appointment, and be as open and honest as you can be. This means bringing in bank statements and receipts, and giving them as much of an insight as you can into your regular spending, as well as your income, and anything else of importance.

They will then evaluate all of this information, and give you their advice about how to look after your money better. Everyone will have a different outcome depending on their lifestyle, and this is only an opinion, but it can give you a lot of clarity and highlight some valid areas that may have never come into your mind before. It may even give you a realistic wake-up call if you need one.

Editor’s note: The opinions in this post are the contributor’s and not those of Science & Enterprise.

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