Tips for money management, loans & making the right choices
Money management is something we all have to do in life the minute we are eligible to start earning an income.
The actions we take throughout our lives can seriously effect our financial position, not just in terms of money management but also for making the right career decisions.
We are bombarded with tempting offers to buy now and pay later and to take our loans that we cannot afford but you are still free to make your own choices and getting a good job, whatever your education and making sensible budgeting decisions should keep you out of trouble.
Never rush a financial decision
If you are spending more than you earn, take a big rain check. Borrowing money is a bad habit to get into unless you loan from a sound financially regulated institution that will assist you in calculating what you can afford and how long it will take you to pay it back. Personal loans for buying premises, renting equipment or improving your skill set to help you to make yourself more employable and further your career, are a good idea but loans for instant gratification purchases are very dangerous.
Learn to save
It’s important to use tools and experts to help us understand our current financial situation. Whether this means consulting our bank manager or using loan calculators, getting a handle on where we stand in relation to our income versus our goals can do wonders. It can help us create a proper budget and find work that doesn’t require an enormous salary, often only possible with a degree.
For example, earning a lot does not mean you will save. Even someone who doesn’t earn an enormous income can still implement smart saving practices that allows them to do well later in life.
Working with a budget is key: Using various tools, anyone can properly implement ways to save better. You can even use your bank’s automated systems to help you so you don’t have to think about doing the saving yourself.
Consider investing in real estate
Another good option is to consider investing in real estate. With enough initial capital, and good advice, you can find yourself a source of income.
Financial experts advise that you balance your investments by choosing stable options. In South Africa, the property market is one of the options. This nets you an income, in a stable way. Even employment in lucrative areas is often not as secure.
These are just some ways you can earn, manage, borrow wisely and retain your money.