You need money to live, and you want it to have fun. When you overextend your finances, there are feelings of guilt. And when you need funds to cover something of necessity, stressful emotions emerge. If you live in a cycle of money woes, it is time to begin changing your relationship with finances. Please continue reading to learn some actionable ways you can start today.
Become Financially Savvy With These Practical Tips
Look for Money Owed To You
Have you purchased a vehicle under the PCP car finance scheme? If so, you may be entitled to PCP Refunds under the guidance of the Financial Conduct Authority. A PCP is a Personal Contract Purchase or car finance agreement. With this option, a car buyer agreed to certain terms that were not always made clear to them, resulting in more money paid due to a misrepresentation by the car dealer.
If you have purchased a vehicle but are unsure whether you are owed any money back, your first step is to check your eligibility with a reputable company. Have your necessary paperwork and information on hand, including the vehicle registration information. The process is relatively seamless, so why wait?
Start a Side Hustle
Do you have a hobby or something you enjoy doing that could bring in some extra money? If so, perhaps you should start a side hustle or side gig, as it is sometimes called. Choose something that will reasonably fit into your schedule. Some popular side jobs include:
- Elder or Child Carer – If you have patience, time, and enjoy being with your elders or children, consider becoming a part-time carer. You can do this on the weekends, in the evening, or whenever is convenient with your schedule. Always determine whether or not you need to be certified and licensed for these roles.
- Food Delivery – Sign up with a reputable company to ensure the legitimacy of orders, and pick up a delivery with this easy job. All you need to do is pick up food and drop it off with the purchaser. The monetary transactions are generally conducted via an app, and you can do this job when you are in the area.
- Driver – If your vehicle is clean and reliable, use a reputable company to work with and pick up passengers when it is convenient for you. Check the corresponding app after dropping the kids off at school or on the way home from work if you have a little extra time to pick up a fare nearby.
- Selling Crafts – If you are a creative individual, consider selling some of your creations. Anything from handmade soaps and lip balm to colourful crocheted scarves and scones with jam to wedding cakes are all sought-after goods that can be made and sold from home. Check with your local government to determine whether you need to apply for a special permit to sell. Once you have some products stocked up, begin advertising on your social media sites.
Track Your Money, Always
Knowing where your money goes is essential to being financially savvy. Buying a small pack of crisps? You need to log that purchase. Choosing to eat out instead of noshing on the sandwich you brought from home? That is no problem, but you still need to log the transaction. By paying attention to where your money comes from and goes to, you will be better prepared and in greater control of your finances.
Watch this video to learn how an accountant manages and tracks her income, expenses, and savings.
Prioritise Saving
Saving should be, at least, a twofold endeavour, but you should probably have savings in three separate pools.
- Emergency Fund – Things happen at the most inconvenient times. Your car needs expensive repairs, the pipes in your home freeze with resulting water damage, or your child needs costly orthodontic care. Put three month’s worth of total expenses into an account to cover an urgent situation. Afterwards, make sure you begin to put money back into the account in one lump sum or strategically with each paycheque until it is back up to the initial amount.
- Retirement Fund – Depending on your current age, a retirement fund may seem unnecessary right now. Time moves rapidly, however, and when you start saving matters with the power of compound interest on your side, along with the luxury of time to grow your retirement fund. Put these savings on autopay from your paycheque to your retirement account each pay period. That way, you will not forget to make the transfer or forgo it altogether.
- Large Purchase – Buying things is fun. If something excites you and you truly want to buy it, plan to purchase it instead of pulling money out of your account. Set aside funds with the intention of using them for a large purchase. Once the purchase is made, begin to re-fund that account. Only when it is back up to your chosen amount can you allow yourself to make another large expenditure? With this method, you help control your spending. Some big ticket items to include on this list are concert experiences and going on holiday.
Remember To Have Fun
Whenever there is a discussion of money, it is important to remember that you should use it to have fun, too. After all, you earned it. And if you spend all your time worrying about money, you will never get to enjoy the most important things in life. When you get to a place where you feel comfortable financially, or even while you are working toward your financial goals, give yourself the gift of grace and enjoy an expensive coffee (but not too many) or a monthly night out. Do what makes you happy within the parameters of your financial goals.
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