10 Financial Considerations You Should Ponder

coins-912718_1280There are lots of advice as to what you should and shouldn’t do regarding your finances. Some advice is given to those who are working, living on their own or with a partner, and some advice is for those who’ve not moved out of their parental home, or still in education. So in this article the aim is to provide some balanced and basic tips dependant on your personal situation.

  1. In a relationship? Pool your resources!

Joint finances work for those in relationships where neither of you have a bad credit rating. There’s trust and fairness between you, and it’s a good thing to have if you agree that all the outgoings should be split equally. If any of these aspects might be an issue then it’s highly advisable to have separate accounts. Either way this can be constantly reviewed if you feel like to want to make changes.

  1. To credit, or not to credit?

It’s fairly obvious, but don’t overspend on your creditcard. Even though they’ve become important sources of identification, they provide a convenience that can easily result in overreaching your financial grasp. Within a month finance charges do kick in and you can be in danger of carrying a balance from month to month which might result in you ending up paying up to 23% in charges.

  1. Feel like a kid again. Allowance it is.

It’s the most fundamental aspect of financial sustainability. Work out your incoming, outgoings, and then what’s left and then set yourself a budget. However, where many struggle is going from implementing the plan, to actually executing it. Don’t go over your budget, giving yourself a set allowance each month.

  1. Don’t feel stuck to one place

It’s easier to consider moving when you’re young. By moving early, you free yourself to take opportunities where they are. When you’re older there’s your own family, and elderly parents to take care of. This does mean having a limit selection of available jobs if you need to stay close to home, meaning that some opportunities might not be there for the taking. However, if you have marketable skills there are plenty of online-freelance opportunities out there.

  1. Be informed before you act

Regardless of whether you consider renting out a room, offering your freelance services, or even want to play online, knowing what you go to is the best way to go about anything. If you like a little flutter then you might want to follow these poker bankroll tips. Lucky Nugget Casino has given advice online to make sure that you don’t get carried away. It has information on what a bankroll actually means, and to know your limitations.

  1. Renting or buying?

If you get the opportunity: then buy the place you live in. Paying rent is what’s considered to be ‘dead’ money, where it doesn’t lead to anything (apart from a roof over your head.) Buying property will give you something to sell, and hopefully will make you money. By owning, you also have the option to do home-improvements which can increase its value. Not to mention you have the option to rent out a room or two.

  1. Education is in fact investing in the future

If you have the opportunity then stay in school longer. It’s extremely tempting to go straight into the workforce as soon as you’ve finished school, but the further you go up the education system, the more likely you’re going to start on a higher salary, and chosen for promotions in the long run. You can opt to further your education via institutions that offer online courses, like that of RMIT, and choose among a variety of online programs that suits your chosen field best.

  1. Knowing what’s competative

Once you’re in full time employment then try to negotiate your salary. Research by checking with friends, recruiters and pay scale to see what you should be realistically getting. Future raises, pensions, and bonuses are often based on a percentage of your salary, which can make a big difference in the future.

  1. A penny saved, is a penny earned!

Reduce or eliminate your expensive habits. Even your daily cup of java, smoking, drinking, buying expensive clothing, all adds up, so try to eliminate them one at a time, and put your money to good use elsewhere. Small figures always leads to big dents over extended periods of time.

  1. Insure yourself, before you wreck yourself

Finally, this seems like the last fun thing to consider, but it simply makes good sense to get insurance. Life insurance will be the best decision you ever made if anything bad was to happen, so look into what insurance policies are out there, and choose one which suits you best.

There are times not to make financial decisions, read about that as well as how to fund your education, and the numbers behind renting vs buying.

Times When You Shouldn’t Make Any Financial Decisions
Funding Your College Education
Pros and Cons of Buying vs. Renting a Home

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