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How to Manage Your Finances Better in 2022

March 18th, 2022 Posted in learning about money, Money Tips
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Making financial decisions is never easy, but it’s especially tough in today’s economy. If you’re not sure how to manage your finances better in 2022, don’t worry – you’re not alone. This blog post will discuss some critical financial decisions that you need to make this year. We’ll also provide tips on how to make the most of your money and stay out of debt. So whether you’re planning to move, invest or simply save for a rainy day, read on for advice that will help you reach your financial goals!

How to Manage Your Finances Better in 2022 - checking your savings image
Photo by Karolina Grabowska from Pexels

#1. Decide what’s important to you

Before you can start making financial decisions, you need to figure out what your priorities are. What do you want to achieve in the next year? Do you want to save up for a down payment on a house? Or are you looking to invest in your future by starting a business? Once you know what’s important to you, it will be easier to make financial decisions that align with your goals.

#2. Make a budget

If you want to be successful in managing your finances, you need to create a budget. Sit down and figure out how much money you need to live each month comfortably. Then, track your expenses and make sure you’re not spending more than you can afford. It may take some time to get used to living on a budget, but it’s worth it if it means reaching your financial goals.

There are a few different ways to approach making a budget. You can use the 50/30/20 rule, which allocates 50% of your income towards essentials like rent and groceries, 30% towards non-essentials like entertainment and travel, and 20% towards savings or debt repayment. Or, you can use the envelope method, which involves dividing your cash into different “envelopes” for different expenses. Whichever approach you choose, the most important thing is to stick to your budget.

If you’re not sure where to start, there are plenty of budgeting apps and websites that can help you get started. Mint is a popular option that enables you to track your spending and create a budget based on your income and goals. 

#3. Invest in yourself

One of the best ways to manage your finances is to invest in yourself. Whether you’re looking to improve your career prospects or simply want to learn new skills, investing in yourself is a smart way to use your money. Consider taking a class, attending a conference or even starting your own business. Not only will you benefit from the knowledge and experience you gain, but you may also be able to make some money back through increased earnings potential.

Investing in yourself doesn’t have to be expensive. There are plenty of free or low-cost resources available online and at your local library. So if you’re not sure where to start, do some research and find an investment that fits both your budget and your goals.

#4. Move to another location

If you’re struggling to make ends meet, it may be time to consider moving to another location. This could mean downsizing your home, relocating to a more affordable city or even moving in with family or friends. While it’s not always possible to up and move, it’s worth considering if it would help you save money in the long run. Madison Fox provides luxury properties if you are interested in moving. 

Of course, there are some drawbacks to moving. You may have to give up your current job, leave behind your support network or deal with the hassle of packing and unpacking all of your belongings. But if you’re confident that the move would be beneficial for your finances, then it’s definitely worth considering.

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How to Get Your Child to Learn More About Real Estate

March 14th, 2022 Posted in kids and money, learning about money, Property Investment
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Teaching can be fairly easy when it comes to your first few years as a parent. You’re taking care of your little one, you’re letting them develop their own interests, and on top of that you’re teaching them the basic things such as ABC and counting to ten. While the theory of teaching and taking care of children sound simple, in practice, it can be quite challenging of course. But as your child navigates through life, they’ll learn more about how to survive once they reach adulthood so they can thrive.  While school can teach plenty of life lessons to your children, one thing they don’t teach is real estate.

Real estate and real estate investing are important. It needs to be known and understood so adults can purchase their first house. But property value isn’t the only thing either, interest, mortgage, banks, savings, and overall financial health also play a major impact in this as well. These are things that aren’t exactly covered in school, quite possibly in college as well.  So, how can you teach this to your little one? How can you get them to understand the importance of financial health and the impact of real estate? These helpful tips may be all you need to get started on this journey.

How to Get Your Child to Learn More About Real Estate - model red house and key image
Photo by Tierra Mallorca on Unsplash

Why is it so important to teach children about real estate?

Many people think that it is not a good idea to teach their kids about real estate because they want them to have a carefree childhood. While that’s understandable, a child has to learn so they can make smart decisions once they reach adulthood. Besides, there are many benefits to learning about real estate at a young age. Children who are taught about real estate at an early age are more likely to purchase their first home before the age of 30.

Start by teaching them the value of a dollar

Children believe that money is an infinite source, that there doesn’t need to be any work, trade, or anything in order to receive it. It’s natural for kids, especially small kids to have their train of thought. So, what can be done? First, begin by teaching them that money is a scarce resource and it’s not something that their parents can pull out of thin air.  You just need to find an age-appropriate way to get them to understand, and one of the classic ways is through chores.  Getting them to understand money at a young age is going to ensure financial wellbeing.

Letting them work for the money will also let them know that there needs to be some sort of trade to get money. It also teaches them that if they want something, they will need to work for it, and it also teaches them that the things they have, are thanks to their parents working for it.  It takes a little while to teach, but kids will eventually get the understanding.

Let them play video games

While real estate is something that can be difficult to grasp for someone at any age, the sooner, the better. So teaching it to them at a young age will be optimal. If you love video games, then this could be a great and engaging way to have some fun with your child while also teaching them about real estate.  There are plenty of video games that are out that do teach basic economics, financial health, and real estate. You, of course, will want to choose a game that can nicely reflect on your child’s age.

While The Sims franchise can be a great option if you have a tween to teenager, for the younger kids you could opt-in to playing Animal Crossing or Harvest Moon. This family fun bonding time can be one of the best ways to get your kid interested in real estate.

Get them involved

If you’re a property owner, why not talk about your property with your little one? You can explain the ways that you’re working towards raising the value of the property (such as home renovations or curb appeal), but if you have multiple properties, you can get them involved in that as well.  This can include letting them look at a lodger agreement template for your tenants, but you can even teach them the odds and ends of how you invest.

 Children are visual learners, so getting them to learn all about this up-close and personal can be a great way to get them to understand all about it. So just bring them along when you’re working on boosting property value, managing money for your real estate, and when you’re hunting for real estate to buy. It can be a great educational experience for them. 

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The 7 Pillars of Financial Wellbeing – Awareness

February 22nd, 2022 Posted in learning about money, Wellbeing
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Awareness – Understanding where you are now, where you want to be and creating a plan to get there

If you were asked how much money is in your bank account right now, how accurate could you be? Within £100? Within £10?

If that was challenging, you are not alone. When I ask that question to a group, the majority has no idea.

Yet most of us know how much we earn and will soon notice if an expected sum on payday is different by even a small amount.

So what’s going on? It would follow that the gap in our understanding is in how much we spend.

if you would prefer to listen to this post it is available on The Fearless Finance podcast

The 7 Pillars of Financial Wellbeing - know your numbers. The importance of awareness - looking in a mirror image

I remember travelling one time and allocated myself a budget in the local currency in cash. Everything I spent, physically came from my wallet and I could easily see at a glance how much was left. Setting aside money for a coffee at the airport and a taxi to get there, I was pretty confident and certain how much I could spend throughout the week.

And it feels good to be certain.

Contrast that with how most people manage their money day to day. It arrives electronically and leaves electronically and if we only glance at a balance once or twice a month, we really have no idea how much is available.

Rather than certainty, we are in the realms of assumption and denial.

Know Your Numbers

A great starting point in financial planning and regaining control of your money is to know your numbers.

Make a list of your regular outgoings, housing costs, food, transport, subscriptions etc. Next add on other spending, which is less predictable such as nights out, or clothes maybe.

If you total the list, you now have a pretty good indication of how much you spend each month and where it goes.

If you enjoy being even more granular you can use tracking apps or a spreadsheet to dig deeper or automate the process.

To some this may seem like a bit of a pain, but the process can be liberating in several ways.

If you were thinking about changing jobs or starting a business, now you know how much you need to earn as a minimum.

By comparing with your current income, you can see how much of a surplus or deficit you have each month. If a deficit you can take action to reduce or re-evaluate your spending. A surplus can be directed towards saving, investment or paying off debt.

A good practice is to pay yourself first by taking some of your surplus at the start of every month, rather than waiting to see what’s left at the end.

A third benefit is becoming more conscious where you are spending your money. If petrol is costing you X hundred pounds a month, how much could you save by taking public transport? If home heating bills are spiralling, maybe it’s time to nudge down the thermostat? Small savings add up and its better for your wellbeing to be in control rather than in denial.

Setting Goals and Plans for The Future

One of the most popular categories for New Year’s resolutions is around money. Many people set well intentioned ones such as to get out of debt or increasing their income.

One of the keys to effective goal setting is to understand your why. Having a compelling reason for doing something will help you find the way to achieve it.

Some things are more under your control than others. For example, getting out of debt is achievable by identifying spare money and targeting debts in a systematic way. Stop spending money on credit cards and look to switch to lower rates of interest will also accelerate your success.

Doubling your income is more of a challenge especially if you earn a salary. Mostly because there are more factors beyond your control. However, if you ask powerful questions you can expect to receive powerful answers.

For instance, asking ‘why am I always broke’ is not a powerful question. But asking ‘what would need to happen for me to double my income’ could be.

That might lead to some ideas such as asking your boss what you would need to do to qualify for a promotion or raise. Taking additional training or qualifications. Working extra hours or starting a side project. Perhaps even switching careers all together.

A definition of financial wellbeing includes feeling comfortable and empowered around money both now and for the future. Therefore, a better understanding of where you are now and where you want to be is a great first step in improving yours.

If you would like my free guide – The 7 Secrets to Financial Wellbeing – please click here

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Six Ways on How To Build a Financial Legacy

January 18th, 2021 Posted in financial education, learning about money
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Financial legacy is the highest tier in financial success – the self-actualization in the financial world. It is the lasting financial security that a person’s generations experience. It takes tough grind and consistency to realize this feat – it is not an overnight accomplishment. You need to grasp financial basics and use them to grow your wealth.

Six Ways on How To Build a Financial Legacy - coins on a table image
Pexels

Financial Foundations

There is no legacy without foundation. A good financial foundation is based on sound financial education. Financial education is quite underrated. It should begin at an early age where you instill good financial values. Financial education is the duty of both the parent and the instructors. Parents need to emphasize its importance as the kids will carry on their legacy. They need to learn financial management, saving, and investment in their youth. The parents should also teach about damage control to handle any mishaps with confidence and assurance. They should take time to enlist the practical help of their children to be their mentors in financial success.

Numerous Sources of Income

Having multiple streams of income boosts your earnings. It enables you to increase your savings and investment allocation. It allows you to dedicate some of your funds to asset-acquisition projects to multiply your wealth. It also provides financial security if you lose your job. It provides reliability and assurance that cushions you during tough economic times.

 Financial Management

To succeed financially, you need to learn how to take care of your funds. You must know the basics about loans, savings, investments, and their relation. The timing in getting bridging loans or business loans to finance your investment or when to get a mortgage is critical in any financial journey. It would be best if you got a mentor who will guide you in your financial course.  A mentor who will help you stay focused during moments of tremendous pressure. You will also need to be precise in your decision making as any decision made will directly affect your finances.

Saving Culture

Saving is not a matter of putting away extra coins or notes for a rainy day. It is about discipline, focus, and the ‘save to invest’ mentality. Most of the time, you buy piggy banks for savings without setting your end goals. It would be best if you taught the saving culture as a journey, not a destination. The money saved should be channeled to financial advancements.

Investment

Investment is anchored on asset acquisition. Wealthy people are mostly valued using their net worth: the total worth of their assets less the liabilities. It shows that assets are the building blocks to any financial success. Research your proposed investments to know their viability in the market. The investment choice will establish your R.O.I. – earnings from the investment. Always set your investment goals with a fixed duration of time.

In Repetition Lies the Secret of Success

Financial success is a product of good financial decisions executed perfectly. It is a continuous process that needs hunger and commitment to surpass your expectations.

Believe in yourself, be consistent in your actions, and you will be sure of your success!

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How Can ‘Financial Stability’ Be Defined?

January 6th, 2020 Posted in learning about money, Money Tips
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The aims of financial management are never ‘completed’. Just like fashion, it is a perrenial and important part of the means in which we plan our lives. Things move on. Just as you wouldn’t likely wear bell-bottoms outside of a period disco event, you needn’t factor in inflation statistics from the 70s in order to manage your households – things change and the means in which we deal with those changes will also change over time.

Financial management is an active, dynamic art, because money is an active, dynamic energy – or it can be thought of as such. This means that when assessing ‘financial stability’ it’s very easy to get confused if not coming at things from a certain mindset. You may earn less one year than the previous, but that doesn’t necessarily mean you’re doing worse off financially.

So, for those just starting to grapple with their financial management, how can ‘financial stability’ be defined, and is it even something we should aim for? Moreover, how can we use this knowledge to avoid falling into difficult financial traps we would rather not have been part of? We think we have some answers to this end:

Pexels – CC0 License

Living Within Your Means

Living within your means should be considered sacred wisdom when it comes to managing your financial stability in the best sense. We all know that if we’re struggling for cash, heading out and purchasing a new car on our credit with payments we cannot hope to afford is a silly idea, no matter how many irresponsible salesmen out there may be willing to grant us that opportunity.

That being said, living within your means can become too tight, to the point where you refuse yourself the ability to pay for reliably speedy internet despite working from home all day every day. Living within your means signifies tailoring your daily living situation to you, and from that vantage point saving money as appropriate.


If you’re a bachelor living alone? Perhaps you can easily do without the most luxurious accessories such as silk-lined toilet tissue, or whatever we can exaggerate to seem silly in context. If you’re running a family household, however, purchasing high-quality school uniforms may be worth the investment, as well as a sewing machine for the inevitable repairs you will have to make. This last example shows how worthwhile, intelligent investment in the things that matter and frugality exercised through repairs both have an important place in the daily financial lifestyle of a household.

Overarching Financial Priorities

It’s worth keeping your overarching financial priorities in mind. When we measure stability, we often measure it in response to the environment around us. For example, a boat is not ‘stable’ if it’s docked on land, or at least that’s not the environment we would measure its use within. We would consider it stable if it holds stability within the ocean, in conditions we expect the design to meet. As such, financial stability can be best measured when it’s set against the overarching intent of our financial priorities.

Perhaps the most obvious and fundamental part of this would be considering your survival needs. Are you able to eat three square meals each day, and provide those to your family? Can you pay your rent? Can you purchase new shoes when you need them, or fill your vehicle up with fuel when empty? This might be considered your first financial priority.

Then we have those higher up the pyramid. Are you managing to put away some money in case of emergencies each month? How about saving to build your credit? What about potentially earning enough to settle down and be viable for a mortgage in five years time? It’s these questions that are worth asking, and can help you measure the relativity of your financial situation among many different criteria. This way you can make your budgeting decisions effectively. It could even help you use your financial stability to give grounding to someone else, such as when using a guarantor loans comparison site to help a financially needful (yet earning) relative with a cash injection.

Defending Your Finances

Defending your finances is also a part of financial stability. It can be easy to be a victim of financial fraud if you care little for where you store your documents or how you store them, and the same goes for ignoring suspicious transactions in your bank account. Learning how to shake the card reader section of an ATM can help you also find scanning devices placed by those without scruples.

There are many ways to defend your finances. From ensuring you apply adequate fingerprint protections in your mobile banking app to avoiding taking on loans with predatory pricing terms, it’s important that you have your financial health in mind at all times. This can sometimes be through defensive action, or aggressive action such as disputing an outstanding charge that has since appeared on your credit file.

Overcoming Worries

We all have our financial worries from time to time. It’s not exactly something that is inevitable, but many can find themselves somewhat lacking in their financial allowances or potential and may suffer as a result.

Overcoming those worries can often be found by direct, worthwhile action. Sometimes, you may have to work overtime or take on an extra shift depending on where you work. It can be that through using debt charities you are able to get a handle on your debt and get back to normal, contacting and consolidating creditors to the best degree.

Financial stability is not always supposed to mean having the best and strongest financial sitting, with thousands in the bank and the ability to purchase anything you want without any recourse for the consequences. Instead, it’s about doing what you can to become stronger and more stable in your financial efforts, no matter how humble a starting point you may be beginning from.

With this advice, we hope you can accurately and adequately define financial stability in the best sense possible.

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