Putting Your Money To Better Use In Life

Many people waste money unnecessarily in life. That’s because many of us weren’t taught about financial management at school, and we’ve had to figure out how to manage our money through a process of trial and error. If you want to improve your financial situation this year but you’re not sure where to begin then here’s some advice on putting your money to better use.

Get your expenses in order.

The cost of living can seem extortionate at times, but many expenses are unavoidable. Still, there are ways to reduce the amount you spend on everyday things. To clarify, you don’t need to cut back on necessities to save money, but you could start spending less on those necessities by rethinking your essential expenses. Take a look at your budget (or make a budget if you don’t already have one). It’s important to track where your money is going on a monthly basis. You need to know how much money has to be set aside for mortgage payments, utilities, food, petrol, and so on. That way, you’ll know how much disposable income you have available after covering the basic costs for the month.

If you’re only just covering your expenses then you might want to take a smarter approach to purchasing necessities. For example, you could save money on food by using coupons every time you do your weekly shop and buying own-brand goods at supermarkets. You could even save money on petrol by simply using your car less often. Of course, covering the bigger costs in life can often be a little trickier. You might want to seek help from 1st remortgage advisors if you’re struggling to get a loan for a house remortgage with your current credit score. You shouldn’t let your credit rating stop you from affording the things you need in life.

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Save your money regularly.

Another important way in which you could put your money to better use is to start saving it regularly. You can still treat yourself to non-essential purchases in life, but you also need to think about the future. Putting aside a little bit of your earnings on a regular basis could help to ensure that you have some substantial savings for your later years in life. It could also give you an emergency fund in the event of unexpected events. Transfer a set amount of money to your savings account every month (or every week) if you want to start securing your future.

Start making some investments.

If you really want to put your money to better use in life then you should start making some investments. Rather than letting your money very slowly gain an insignificant amount of interest in your bank account, you could invest it wisely. Getting a good return on an investment can massively increase your wealth, but it’s all about choosing the right market at the right time. It can be a risky game, but you need to learn to be patient and calm. All markets are unpredictable, whether you’re an experienced investor or you’re new to the game. The key is to simply wait for the market to take an upturn before you sell your stock in a panic. Make sure you do some research before parting with your money. It’s important that you make small and well-calculated investments.

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Poor Financial Habits You Could Easily Inherit From Your Parents

There are a lot of things that you might inherit from your parents. For instance, you might have your Mom’s eyes or your Dad’s hair color. I’m sure that you will be very happy with the various physical and personality traits that they pass onto you. However, there could be a few bad habits that you pick up from them too. Unfortunately, some of these bad habits might be to do with your money management and could lead you to make some poor financial decisions. You might even inherit some of these without even realizing it!

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Here are some of the common poor financial habits we pick up from our parents – make sure you try to break these habits once and for all!

 

Impulsive Spending

If your parents were impulsive spenders and used to flash the cash without even thinking about it, then there is a good chance that you will do this as well. After all, it might have been all that you knew as you were growing up. Even though this may seem normal to you, it’s still important to try and get all of this spending under control. It could push you over budget each month, which could make it ever so easy to spiral into debt.

 

Taking On Too Much Debt

There isn’t too much wrong with taking on small amounts of debt as long as you are 100% sure that you can always pay back the monthly repayments. If you are ever unable to pay back the debt, you could get into a lot of trouble with the lenders, and this may lead to your home or valuable possessions being repossessed by the likes of repossessions-uk.com. So, always be very careful with debt and only get into it when you have tried all your other options.

Burying Your Head In The Sand

Some parents might ignore their money worries in the hope that they will blow over before too long. Sadly, though, this rarely occurs. It’s more likely that the worries and troubles will become more problematic, and you might end up with a very urgent problem on your hands. Thankfully, though, there are lots of ways to fix your money issues. One solution is to use a site like repair.credit to start fixing your credit report. A financial advisor can always help you start a debt repayment plan. Just remember that it’s always important to take action before it’s too late.

Not Being Open About Money

Lots of families also find it hard to discuss money management with each other. If this was the case with your parents, and they rarely spoke to one another about their finances, you need to change this in your own adult life. Be open and honest with your partner so that you can always help each other when managing your budget and finances becomes tricky.

Hopefully, you don’t pick up many of these bad habits from your parents. But don’t worry if you do, though – most of them are very easy to shake off!

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How can you afford your dream car?

Thousands of car buyers each year seek their dream car with a brand-new registration. Buying a new car over one that is second-hand can bump up the price tag, but driving off the forecourt in your dream car is a feeling like no other. So, without breaking the bank, how can you afford your dream car?

Personal Contract Purchase agreement

This is where the end value of the car is agreed at the start of the contract, so you can plan your payments accordingly. Payments are often less than what you’d pay in a hire purchase agreement as you pay the full price of the car, plus interest but minus the guaranteed future value of the car. You must pass credit checks before you’re eligible for a PCP agreement.

To lower the monthly cost, you can place down a large initial deposit if you can afford it. Saving a lump sum for a large deposit is easier than saving up for a car, while reduced monthly payments can really help out too. Always evaluate your current monthly payments before you agree to a finance agreement, as being behind on your payments can lead to financial issues.

When it comes to the end of your PCP agreement, you can either pay off the future value of the car to become the full owner, hand back the keys or trade the car in as a deposit for a new finance agreement.

Be aware though, if you have exceeded the forecasted mileage on the car, there will be further charges to pay. This is because more miles decrease the value of the car. Also, any damage to the car will be charged to you, so you must be prepared to take good care of the vehicle.

Hire purchase agreement

This is relatively similar to a PCP agreement. It involves monthly payments with the option to purchase the car at the end of your agreement based on its new value.

A usual deposit for a car is 10% of the car’s value, but often you can pay more to reduce the follow-up monthly payments. The rest of the car is then payed off in instalments over a period of one to five years. The longer this period, the less you have to pay each month but due to interest charges, the total cost of the car becomes higher.

Buying a car by credit card

If you want to buy a car by credit card, it’s best to speak to your car dealer first as some dealerships don’t accept this method of payment.

Paying through your credit card company can give you added protection on the full purchase cost (often as long as the value of the vehicle is over £100 and less than £30,000). Of course, you have to be able to meet your monthly payments too.

This method allows you to put down an even lower deposit than 10% and pay the rest of the vehicle off using a debit card. It’s best to consider all options here, as often the interest that you pay on a credit card could be significantly higher than that of a finance agreement.

 

As we can see, there are a range of finance options available to you for purchasing new cars — allowing you to drive that dream car you’ve always wanted without forking out loads of cash. Save up what you can for a significant deposit and always make sure that you can cover the payments before signing any agreements.

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