This is a collaborative post by Ellie Jo.
Your finances are important. As you get older you really do start to realize the value of money and how important it is to you and your livelihood. Yet so many people don’t protect it, they waste their money and then wonder where it has all gone at the end of the month. But as humans, we’re really terrible for doing this. Sometimes it is just the case of not knowing how to protect them, and the benefits of doing so. So many people live for their paychecks at the end of the month, not live for the money they could have in the future.
Therefore, the purpose of this article is to teach ways in which you can protect your finances, and how it might benefit you and your family. As good as money is, we as adults know how hard it is to come by. As soon as it comes in our banks it seems to disappear, so here is how to make it stay!
A lot of people just assume that investing is just for businesses, or for people with a lot of money. But this isn’t the case, your money can go so far if you invest it and know what to do with it. All you need is a little bit as well. The thing with investing is that it can be pretty risky, so starting off small to make sure you get a feel for the market you’re investing in is so important.
One of the most common things that people put their money into to see what happens is stocks. But you first need to watch the market and have some base knowledge of what you’re doing to make sure you’re making the right investment. Some shares are just terrible to invest in, and you might even see yourself losing out on money. Others are just pointless and won’t make you any money. Do a bit of research beforehand and put a little bit of money in to begin with.
Another thing that is driving the internet crazy at the minute is bitcoin. Some people think it is fake and won’t make you any money, the people who are dabbling in it are finding themselves making thousands. But, make no mistake, this is even riskier than buying into some shares. All you need to do however is buy the coin whilst it is at a low rate, and sell it at a high. You then keep doing this and buying more to sell until you’re sitting on a fortune. Again, make sure you’re doing the relevant research in order to be successful.
Insurance protects us no matter what in life. Car insurance, health insurance, life insurance. It is all something we need in order to protect our own finances, and in some cases our children’s as well. Yet so many people go through life risking it without it as they don’t want to pay the fees involved. But the fees you’re paying is money you’re building up for when something does go wrong, and they really aren’t that high either.
One thing that a lot of people don’t consider due to it being a bit morbid is burial insurance. Yes, the time will come for everyone eventually, and funerals are a lot more expensive than people like to think about. The costs your family might incur can be pretty harmful to the finances. So even simple things like having this type of insurance is going to protect everyone involved. You can find a guide to burial insurance here.
Things such as life insurance, whilst still a tad morbid, is also something everyone should consider getting from around the age of 30, or when you start having children. It is like building a little savings fund to make sure everyone is going to be ok with paying bills etc. if anything did ever happen. Preparation is key when it comes to your finances.
Savings are something that everyone should try and have, but not everyone can seem to build up. They’re pretty hard to sort, especially when you’re paying bills and have a family etc. It is usually the case that after paying said bills, you’re left with not much to get by on. But this is where people are wrong. The money they are left with usually goes on days out, or fast food and things like that. It all adds up, especially if this is a weekly occurrence. Cutting back on things like this and making it a once a month luxury leaves you with a fair bit of cash to put into a savings fund. This can then be used to either fund things for your children, or just be saved for a rainy day in case something breaks in the house, or your car breaks down etc.
There are savings funds that you can set up that won’t let you withdraw anything for a certain amount of time as well. These are the best types. It is so easy to be tempted to take money out of savings for a treat, but this just defeats the object of the savings in the first place!
Protecting your finances is so important to make sure you’re protecting your future and the future of your family. As we’ve said, money seems hard to come by, so making sure you’ve got enough in case something bad happens is essential. The world revolves around money, so you’re always going to need a little spare lying around. This is why it is so essential to protect your finances from an early age. So many people think you have to wait until you’re a tad older to start saving and having insurance etc. But the earlier you do it the better off you’re going to be. Teens are the worse for wasting money, so if you have a teen try and educate them on the importance of protecting it whilst they’re young!