It doesn't matter how much money you earn, or how much you have saved, it's always important to be respnsible with your spending, borrowing and investments. Stoneacre Financial Services have asked me to share my tips on being sensible with money, and I hope it helps you.
It's good to have a credit card and pay back what you borrow- it improves your credit score and shows lenders that you are trustworthy. Just don't borrow what you can't pay back. Make sure that you clear your credit card balance every month, as there's no bigger a waste of money than interest payments! If you need to take out a loan to pay for a one-off large purchase, look around for as good an interest rate as possible and only borrow if you have a regular guaranteed income coming in each month that you can pay it back with. If you default on a payment, you will destroy any good credit rating you have and you will find it extremely difficult to borrow again in the future. Stoneacre have produced a handy good credit infographic below to help you to be in the best position to borrow.
It's always good to save- even if it's just tiny amounts. It feels good to know that you have some money behind you should an emergency happen and you need to lay out a large sum. If you don't have the income to save a huge amount, even £25 per month would give you £300 at the end of one year. Find a savings account with the highest interest rate that you can, so that your savings are making some money for you while they are sitting in the bank.
We all like to spend, but if you find that you're spending more money than you can actually afford, you need to cut back. Don't spend what you don't have or what you can't clear on your credit card at the end of the month. To get your spending on track, set yourself a budget and don't ever go over it. This will force you to make more considered purchases and you may even enjoy those purchases more as they'll feel like treats.
Have you found any of these tips helpful?
This is a collaborative post with Stoneacre Financial Services, but all opinions are my own. I have never used this company as a customer, so this post is not an endorsement of their services.
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Image Credit- RekitaNicole