Your money and finances are an area that you can’t make too many mistakes in. Otherwise, you may end up with more problems than you bargained for. In fact, it best to try and dodge any finance faux pas that may be in your path. Happily, to help you do this, we have written the guide below.
So debt can be something if a dirty word these days, and we can immediately think of it as the biggest financial faux pas that you can make. But wait! Could it be that not all debt is actually bad? That right, in the society that we live in sometimes debt, is a necessary thing, and some debts can even improve other areas of your financial health.
For example, getting a mortgage may be really hard if you haven’t had credit in the past which you have paid off regularly. That means the debt of your credit, helps you to get on the next step of the financial ladder.
Of course, there are definitely some bad debts. Such as one that you cannot pay, or ones that have a huge interest rate that makes cleaning them unrealistic. So always know exactly what you are getting into before you sign a credit agreement.
Saving at a low rate
A massive finance faux pas that you need to avoid is saving money at a low interest rate. There are so many competing banks and products out there, that will be nearly always a better deal for your savings.
Yes, you may have to keep your money tied in for a longer time in a product such as an ISA. Or you may have to pay in a minimal amount each month to get these benefits. But in the long term it’s is usually worth doing it, as they can really ensure that your money is working hard for you.
OK, so there is plenty of advice on the internet about what traps to watch out for in the financial areas. But no one is going to have better knowledge of the market than a professional financial planner that is independent.
These folks are trained to be aware of the opportunities, as well as the legal side of investing and saving. So you can ensure the best return on your money.
They can even help you get organized and save for important things like vacations and big events that are coming up too.
It’s all well and good saying that you don’t like to focus on money. That is fine, it certainly doesn’t have to be the main drive of your life. However, that doesn’t mean that you can just ignore it and hope that it will sort itself out.
Money is a tool for living, and it needs to be treated as such. That means whether or not dollar bills float your boat, you do need to have a system in place for monitoring what you are spending and saving.
Having budget doesn’t mean that you are money obsessed, it just means that you are sensible. After all, you keep an eye on your pantry and top up the groceries when you run out. So shouldn’t we at least be doing the same with our finances?