Do you know how to draw up a proper budget?
Do you know the difference between good and bad debt? Do you know how to manage risk so that you get a good return on your investments?
These are things that you literally cannot afford not to know. However you might try to avoid this fact, managing your personal finances is a fundamental part of life, and unless you want it to completely control you, you need to get your head around it and make educated decisions with your money. Here’s how:
Yes, education might be costly, and take up time, and you might feel like it’s a waste of both of those things, but you could not be more wrong. Educating yourself now will save you from losing out later.
Poorly managed finances can have a range of negative repercussions. You could lose your home or other possessions; you could be left with nothing if you suddenly lose your job, or have to retire; your children might not be able to get the education they deserve. On top of this, financial stress weighs heavy on relationships, and is often the cause of marital tension and divorce.
Get things in order now, before it is too late
There are things you cannot plan for. Something happens that you weren’t expecting, such as the death of a family member, your company going out of business, or the economy crashes. You cannot afford to ignore the possibility of the unexpected and planning for the unplanned is vital. It’s essential to know how to set good financial goals or save effectively.
If you don’t know how to save, or how to avoid unnecessary debt you could find yourself up against an emergency without the means to manage it. Set a bit of time and money aside now, and you could save yourself so much trouble In the future.
Retirement planning is very important, and something which cannot be put off. It has to be done now, before it is too late, and your retirement is around the corner.
Set a goal for how much you would like to save by the time of your retirement. Then work out what kind of interest to go for, how often it will be compounded, how much you are going to put in every month, and so on.
These are things you can figure out as you go along, but you could end up losing time and money. Instead, do your research, understand what you are going in for and take ownership of your future.
Take control of your own future
Don’t allow your ignorance to determine your financial future; rather master it by knowing the ins and outs and making educated, considered decisions. It may seem like a waste of precious time and resources to have to learn these skills, but in the long run, you could end up saving massively. So much of the losses people incur are the result of poor planning. Learn how to plan well. You will be so much the richer for it.
Invest in your education – the returns will always outweigh the risks.
For more information about the part-time University of Cape Town Personal Financial Management short course contact Nikki on 021 447 7565 or email@example.com, or visit www.GetSmarter.co.za.