Unfortunately, good money management is not taught in our schools. As teenagers, we spend so much of our time pouring over home working about Pythagoras’ theorem – and not enough learning about the importance of savings, investing, or taxes.
As a result, it’s hardly surprising that many adults find it hard to manage their money – with 40% of Britons currently experiencing poor financial security.
Photo by Michael Longmire on Unsplash
However, with the new year quickly approaching, it’s time to take control of your finances – putting yourself in the best position moving forward. With that in mind, here are some top tips that you can use to get on top of your financial situation in 2022.
- Start investing. While the concept of investing can sound scary, it’s a great way to better your financial situation. However, you must do plenty of research ahead of time and work with reputable companies so that you are able to put your best foot forward. For example, if you wish to invest in property, you might want to look into companies such as property investment uk.
- Make money online. Due to the fact that we now spend so much of our time online, it’s hardly surprising that you can now make more money by browsing the web as normal by installing certain software onto your computer. However, this isn’t the only way to make money from the comfort of your own home. For example, you could participate in paid surveys or online focus groups to bring in some supplemental income.
- Launching your own business. While the COVID-19 pandemic put many jobs on the line, it also gave many entrepreneurs the push they needed to start their own businesses. Therefore, you can open yourself to a world of new possibilities by finding a way to turn your hobbies or passions into a profitable business. However, in order for this to be possible, you have to ensure that you create a winning business model ahead of time. You should also seek out potential investors so that you don’t have to put all of your savings on the line.
- Get serious about saving. The easiest way to get a better handle on your finances is to start saving money. While many financial guides will use this as an opportunity to tell you to cut back on your daily Starbucks – there are plenty of other (and more effective) methods out there that can help you start taking your savings seriously. For example, you can try out the 50:20:30 method, where you spend 50% of your money on things you need, 30% on things you want, and then put the final 20% into savings. Alternatively, you could download a savings app onto your phone that encourages you to be more mindful about the way in which you spend, helping you to reign in bad habits. You should also ensure that you set up a separate savings account with your bank, as this means you are less likely to spend the money by accident (or give in to temptation).
