Would you believe that there are alternative ways to approach your financial situation?
It isn’t as straightforward as being in the black or being in the red anymore, and often a smarter approach to your current financial situation can help you thrive rather than hinder your chances of living your life.
The truth is, money doesn’t make you happy, but it can certainly help. I wanted to share with you some of the smarter ways you can approach common financial situations hopefully offering you some guidance on a different way to do things.
When you have debt
Debt can be a big problem for many households in the UK. It certainly isn’t uncommon anymore for people to live off their credit cards or stay well within their overdraft facility.
There isn’t anything wrong with this either, as long as you can keep up with repayments. But often, people can become complacent with their debt and just dutifully pay the minimum or what they can afford each month. Leaving them in a situation where debt may not be repaid for years.
A smarter approach would be to tackle your debts once and for all. Consolidating into one loan if possible gives you one monthly payment, one interest charge and a payment plan for completion.
If that isn’t an option concentrating then concentrating on the highest interest charge debt would save you more money in the long run.
When knowledge can help
Knowledge is king, and we can all do with a little more when it comes to our finances. While you may not want to get involved within a finance career, often going back to school or learning about finance through an online course can provide a great grounding for your own financial future.
There is even an international finance postgraduate programme for those who might be interested in learning about different aspects of finance.
It isn’t just about what a course can do for you though, it’s having that knowledge to know all about financial institutes and their practices.
There are other ways where knowledge can help. Learning about budgeting can also be a great way to ensure that you tackle your personal finances with a clearer picture of your current situation.
When you have savings
Finally, people today don’t have much clue when it comes to savings. Many people are struggling with low-interest rates from the banks and are finding that their money isn’t working as hard as it should be.
This is when taking a smarter approach could be the answer. You could consider investing in property, maybe even to make money, get a residual income from renting, or even just for a future nest-egg.
You could consider investing in stocks and shares, although there is an element of risk to that. You could also invest in a business. Maybe a start-up or something that has been running for some time.
There are always smarter approaches to your savings, and it can often be far more lucrative than just keeping it in the bank with a minimal interest payment.