Personal finance is one of the most important subjects around, yet many of us were not taught its intricacies when we were at school. Knowing how to control what you are spending and how to save what you earn can be taught through skilfully learning the ABCs of personal finance.
Accounting: This can be done whether you have a note book where you write ad hoc expenditure or by using a computer spreadsheet in Excel or Google Docs. When you account for expenditure, you can do it weekly or daily to give you a picture of what you are spending. One top tip to take control of accounting for your personal finance is to assign a daily and weekly budget to account for your current lifestyle.
Building societies: Traditionally used as a way for people to pool their money to get a mortgage, building societies have become fully fledged banks that offer mortgages, loans and plenty of bank accounts. Look at these societies (Nationwide being one of the most famous) if you are looking for good interests on savings accounts or if you are looking to build a credit profile in the run up to buying a house.
A La Carte Languages Credit cards: Unlike debit cards, credit cards allow you an access to a larger amount of money that is given to you by your bank. Savvy personal finance individuals know how to use credit cards to their advantage and this includes using them for cashback and improving credit rating scores. Credit cards with small limits are a good way to start access to credit, especially if you plan on getting a mortgage in the future to show lenders that you can handle credit.
Loans: Short term loans and longer term loans are the two key parts of borrowing, with short term cash loans being used for emergency or immediate needs and long loans being personal loans for things such as purchasing a car. When you are applying for a loan, always have the end goal in your mind about what you are aiming for and have a fixed income to pay back your loan every month.
