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How to Be Money Savvy

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How to Be Money Savvy

Money is a huge part of many of our lives and it is therefore essential that we know how to handle it. Whether you earn minimum wage or are a multi-millionaire, we are all the same and many of us don’t know how to manage our money effectively. With so many options now including ISAs, premium bonds and investing in property along with many more, it can be a labyrinth trying to figure out where is best to put your money. By being money savvy, you will be able to make informed decisions and get the most from your money.

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Knowing the Basics

The first place you should start is finding out the basics of how to manage your money. It may be wise to go into your bank and discuss the options that are available to you. Depending on your age and the salary that you earn, these could vary. For instance, credit cards that have a variety of benefits could be available to you and could also help to build up your credit rating. Do not be afraid to ask questions and make a note of any terms you are not sure of to investigate.

Familiarising yourself with mortgages, accounts and other financial aspects will make you feel far more at ease about managing your money. The next step to take is to sit down and work out your monthly income and outgoings. This will give you a much better idea of your disposable income. Take into account the amount which you like to spend on treating yourself and you will be left with the money that you are able to save or invest.

Investigating Your Options

There are a huge number of options available for investing money and also ways in which you can save money each month. Start by analysing your outgoings and see if any of these could be reduced. For example, are you paying more than you could be for your utility bills? Check this by visiting a price comparison site which will tell you how much you could save each year by switching energy providers. If you have previously worked out how much disposable income you have, you will be able to get a good idea of which type of investment is better for you as many accounts have a minimum and maximum amount that they are suitable for.

Hiring Some Help

Even by knowing the basics and knowing what options are out there for you, it can still be difficult to decide what the best move is. Hiring a financial advisor could be the best decision you ever make in terms of money. They are experts in the current market and will know exactly what should be your next move in terms of investments, pensions and any other money related matters. Your financial advisor will able to give you advice that is completely fair and will not be biased as a bank could be as they will want you to invest with them. You will most likely have to declare all aspects of your current financial situation, so make sure that before you approach an advisor you are completely clear of what your finances look like. They may also be able to advise on ways that you can cut costs as they may see an overspend happening which you will not have noticed before.

Reassessing on a Regular Basis

As the financial market changes frequently, it is possible that so will the best option for you. It will help if you keep an eye on the financial situation in general and pay attention to what is being recommended. For example, not long ago all financial specialists were telling people to put their money into premium bonds. Now it is advised regularly to put money into a tax free ISA or to pay extra off your mortgage to reduce your monthly payments. A financial advisor will also be able to reassess your personal situation regularly to check that you are choosing the best options.

This post was written by Amy Bennett who hires an independent financial advisor from Homer & Co LLP. She is now clear on her options financially and is investing in a number of projects that are suited to her needs.

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