Part of accumulating wealth is understanding some simple things about money like how much you earn, what you spend it on, how much tax you pay, how much it costs you to live. Sometimes it all seems overwhelming especially when we are all so busy with life, but your money is a big part of the quality of life you will live so it is to your benefit to organise a few important financial areas.
If you have any kind of loan or credit card it pays to understand what the interest rates are and the costs of these accounts, you may be able to save money by consolidating or changing to a newer product with better features, just be sure you know any exit costs and factor these in.
How many bank accounts do you have? Having too many can cost you and may not be necessary have an everyday account, a special purpose account and a bill paying account, these three accounts should be adequate in most circumstances. Also know what you are being charged and read over your statements when they arrive, banks and retailers can make errors, I was once charged twice for buying one book it was only $30.00 so I hadn’t noticed but when I checked my statement and phoned the bank they followed up with the retailer and my $30.00 was returned.
Keep records, this doesn’t have to be difficult all you need is a few ring binder folders with plastic sleeves have a folder for bank statements , one for bills to be paid using a plastic sleeve for each type of bill and a folder for important documents like insurance, loan papers, wills etc. Or you can devise your own system but keep it as simple as possible and in an orderly manner. It might not be a nice thought but I always think if something happened to me and someone had to come in and take over my affairs how easy would it be?
Even if you hate figures or anything related to them you cannot make someone else entirely responsible for your financial affairs you can certainly ask for help but it’s your money so you need to know what it’s doing.
Power Thought
I accept I don’t know everything but know I can always ask.
Remember this for a successful life
Have an exciting day
Teresa and the Team at
