Do You Know How to Manage Your Money Well?

Often, we have seen that people under a heavy debt avail a small amount of loan in the form of payday loan. They get into such situation due to their financial mismanagement.   FCA too has now put lots of regulations on payday loan providers, so that people do not come under stress after availing payday loan.

You can always visit to know about what kind of help they can offer to you for obtaining your payday loans. If by chance they cannot lend any loan to you then they can present your details to their panel of lenders, where you may have a better chance to find a suitable loan that you need.

However, as a common man, it is also important that we too should know how to manage our money well, so that the above situation we mentioned before will not arise at all. We do understand that often it is very difficult to control on our expenses and we may need unsecured loan to bail us out.

However, one should know how to budget their finance on a regular basis, which should be their part of life. People should encourage the habit of saving some money, so that the same can be used during any emergency situation.

Many of you must be already managing your finance quite well but many are not. So, in this small write up we shall try to list few mistakes that most of us end up doing and as a result we come under debt.

  1. We never teach our children the value of money

Best time to learn the value of money is when your children are in their teenage. They should be told about the value of money during this time. Otherwise they will never learn it throughout his or her life.

  1. Children never learn how to manage their pocket money

When your children are young, you must be giving certain amount to them as pocket money. It is your duty to question your child how he or she spending that money. You must use carrot and stick policy to motivate them to spend their money appropriately.

  1. As an adult we do not use the concept of budgeting

Even as an adult after we get married and have family, we often tend to be extravagant and end up in buying spree without making any budget. Budget can always help us to know how much money we have and then how much we can afford to spend.

  1. We fail to manage our pension

Often after retirement too many people often struggle as they have never estimated their expenses and income accurately. Often many people fail to run their household and they always find scarcity of money to enjoy even a decent living standard when people are retired from job.

  1. We never periodically asses our budget

Budget is important at every age whether you are working and earning lots of salary or when you are retired and living on meagre amount of pension. Your budget should constantly update based on present financial condition.