In order to take control of your finances, continue reading to discover a handy guide to managing your finances. In order to properly prepare for your financial future.
7 Finance tips to follow:
1. Make sure to check your bank accounts’ interest rates
In order to ensure that your bank balance grows as quickly as possible, it’s a wise idea to compare your current bank account’s interest rate against the interest rates of rival banks. As if a rival bank offers interest rates that are higher than the interest rates which your current bank offers, it may be in your best interests to open a new bank account. In order to take advantage of higher interest rates.
2. If you have multiple loans, consider consolidating all of your loans into a single loan
There are numerous reasons why you should seriously consider consolidating all of your loans into a single loan. Firstly, if you consolidate all of your loans into a single loan, you’ll be able to decrease the amount of interest, which you’ll pay on all of your loans. As an added bonus, it’s a lot easier to track one loan, than to have multiple loans to make repayments on.
3. Ask for a raise if you work for an employee
If you work for an employer, don’t feel shy about asking your employer for a raise or a bonus. As the higher your salary is, the more money you’ll have to save and invest for your financial future. If you assumed that you should wait to be offered a raise, think again as you’re far more likely to be offered a raise if you show initiative and try to negotiate a raise.
4. Avoid cosigning a loan
Cosigning a loan is an extremely risky move, so it’s a wise idea to avoid cosigning a loan. Even if a close friend or family member asks you to cosign a loan for them. As if the individual who asks you to cosign a loan misses multiple payments, your credit score will be damaged as a result. Worse yet, you could end up being responsible for paying back any money which they may be unable to come up with.
5. If you plan on taking out a mortgage, make sure that your repayments are manageable
If you plan on taking out a mortgage in order to purchase your first home, ensure that your repayments will be manageable. If you’re in doubt, ideally your monthly mortgage repayments should be less than 28% of your monthly income.
6. Make sure that your bank’s fees are reasonable
When was the last time that you checked your bank’s fees? If it’s been awhile since you checked your bank’s fees, it’s well worth comparing your bank’s monthly account fees and transaction fees, to the fees charged by rival banks.
7. Don’t forget to invest for your future
Once you have six months income saved, it’s a great idea to start investing in a diversified investment portfolio. In order to make the best possible use out of your income.
So if you’re determined to take control of your financial future, you can’t go wrong following the 7 finance tips, which are outlined above.