How to manage your money so you don’t feel trapped in life (part III)
The five tips that will help you be on control of your money, so you don’t worry constantly about it or feel helpless in case of bad management.
| 4. Automate your finances |
| Automate your finances by setting up automatic transfers for savings and automatic payments for bills. This simple step can make a big difference, as behavioural economics research shows that making positive actions effortless increases the likelihood of sticking to them. |
| 5. Keep expanding your financial knowledge |
| Keep expanding your financial knowledge to ensure ongoing financial well-being. You can achieve this by listening to podcasts, reading articles and books, talking to a knowledgeable friend or family member, or working with a trusted advisor. |
You can also establish some good money management habits such as:
•Pay your bills on time,
Every time. Late payments can impact your credit scores and trigger late fees.
•Don’t get close to your money limits
It is recommended keeping your credit utilisation ratio below 30%.
•Work at establishing a long money history
Before closing a credit account, make sure to think through how it may affect your credit scores.
•Only apply for the credit/loans you really need.