Common Misconceptions about Saving Money

Topics concerning money have always been regarded as one of the most important ones in the average adult’s everyday life, and of course, among all the good advice that are out there, there are quite a few popular myths too. Naturally, one cannot avoid making mistakes completely, as this is an essential part of being human, but why not to try to prevent at least some of them by learning more about the most common mistakes that people make when dealing with their budget. Saving is a particularly controversial topic for many, for various reasons.

You don’t need to Do It Forever

Often, people think that only those who are obsessed about money are the ones who are financially independent. However, not everything that you do or think needs to revolve around improving your finances 24 hours a day, and often it’s quite enough to establish good habits and stick to them. If you plan your finances well enough, earn enough from your job and receive an extra income from outside your paycheck, then you should be able to relax a little and enjoy your life from time to time, with no need to think about money constantly.

It’s Not About Profiting from Interest

Unfortunately, the old and simple scheme to rely on the interest rates from a saving account for additional income is proven to be outdated. A couple of decades ago it was a lucrative opportunity when the interest rates were around 5 %, but nowadays it is quite hard to find rates above 1%, since banks and other credit institutions don’t need so much cash from depositors anymore. So it is safe to say that saving accounts are definitely not the best option when it comes to investing and expecting a higher yield. 

It’s Never Too Late to Start

Even if you haven’t always made very sensible financial decisions in your past and you lack the confidence to turn your situation around, one important thing to realize is that things like old age and mistakes are just an excuse. Like with many other areas, the first steps here are proven to be the hardest, but if you start with small steps and are consistent with your goals, there is nothing that could keep your lifestyle and spending habits from doing a 180 degree turn. Just prepare an achievable plan for yourself and stick to it and be patient – you will be rewarded for sure!

You’re Not Limited to Your Main Salary

A common misconception about saving and spending is that one should only rely on his or her paycheck. Many people stay away from investing, often thinking that it’s limited to professionals in the field. Other people tend to feel secure once they have reached what they think is a high enough salary. However, even the highest earners can find themselves in financial emergencies when the monthly paycheck is not enough for all bills. Even if you are total novice in investing, it is always good idea to set some time aside and get familiar with the basics. Probably a good start would be to learn more about saving accounts or Certificates of Deposit (CDs).

You Don’t Need to Keep it All in One Place

Probably one of the biggest lies about proper money saving is that everything that is set aside needs to go to one bank account and never be spent at all. But even though pouring every bit of savings in the bank may sound like a safe and sound idea, this could prevent one from pursuing lucrative and attractive opportunities that could eventually be profitable in the long term. What needs to be understood is that financial security involves much more than just piling your means in a neat saving account – think whether it is possible for you to invest part of your savings. It’s better if you don’t put all of your eggs in one basket as the popular saying goes. In fact, you should even feel free to stray a little – look into taking out a loan to fill a hole in your investments, for example.

It’s Not Difficult to Keep Track of Things

Dealing with financial matters may sound intimidating to some people, but you don’t need to be a financial wizard in order to adopt some simple and yet useful habits when it comes to managing your money. For example, why not try to record all of your monthly expenses and once you have gathered your full list of spending habits, you can easily organize your data into categories. In that manner, it will be a piece of cake to see if it is possible to reduce the amount of what you pay in some areas. 

All in all, money saving needn’t be such a great mystery especially if one follows some simple rules and builds some useful habits. It would be the best for you if you take the time to decide on your priorities and understand what is important for you in the long-term. With some dedication and patience you will soon be on your way to achieving your goals. 

Why You’re Probably Not Using Your Computer and Smartphone to Their Full Potential in Your Finances

You have probably countless tips on how to handle your finances in an advanced way, or what to do so you can be a responsible with your money. All in all, there is much that could be done when it comes to the topic of finances, but what people often forget is that you can greatly reduce your workload with the help of you own technology. Nowadays, smartphones, personal computers and laptops are everywhere around us and nearly every person has one. But besides using your device only for taking pictures or browsing through social media platforms, why not employ its capabilities for something more productive?

An Advanced Overview of Your Budget

With the help of your smartphone or computer, you can easily create a sophisticated system for tracking your expenses and handling your financial matters. Whether it is in the form of a table, separate documents or using dedicated software for this purpose, it is totally your choice. What’s important is that you will be able to keep track of your means much quicker in comparison to writing all of this information on paper. Also, using digital media for your important data makes keeping inventory a much simpler process and you don’t have to be especially tech-savvy in order to do that.

Instant Alerts

Gone are the days when you had to show up personally at the bank every time you need to make a transaction or need to set up some financial matter. Nowadays all of those activities can easily be done via mobile application for banking. What’s more you can even set up various alerts from your bank to appear through your app. For example, your bank can notify you instantly if there is some unusual activity on your account, which in turn can be very helpful against frauds. You can also be notified if your balance has fallen below a certain number or a particularly big purchase has been made – it all comes down to your preferences.

Improved Connectivity

Nowadays the role of mobile devices is vital for our daily communications and the way we interact with other people and institutions. They also bring a lot to the table in the way of communicating with others, especially with regards to finances. You can get in touch with other people who might be more knowledgeable on the subject within seconds, and you can easily ask for help, link your different accounts, and do much more that was simply not possible in the past.

Searching on the Go

One important factor which has made the mobile industry so successful, is the fact that smartphones give us the opportunity to browse through the internet while we are travelling. There’s a lot that can be researched online, and this goes double for personal finance matters. From seeking out the best loan deal in your area, to finding a new bank with attractive offers, and of course, looking for those great savings, you can do a lot with that tiny gadget in your pocket that people before you just did not have access to. And you should take full advantage of that.

Discounts and Coupons

Even if you usually prefer to go old school and do most of your shopping in person, at some point you will have to admit that online shopping has its perks. For example, nowadays there are various discounts and coupons available online, and people don’t have to wait for them to arrive in the post anymore. Instead, you can search for deals online or even use specialised extensions that can get you various coupons for all kinds of shops and retailers. With a quick Internet search, you can save yourself a lot of money by just browsing on your device. Of course, probably the best part of using digital coupons instead of paper ones, is the fact that you don’t have to deal with printing and cutting paper.           

Store Apps

On today’s market there are millions of applications dedicated to various tasks. Among them, there also a lot of apps designed especially for managing personal finances. Most of the banking institutions have their own free software that you can use when you want to check on your account balance, make a transaction, pay bills and many other services as well.

All in all, mobile devices give us the enormous benefit of saving time in our daily tasks and it would be great if we’d employ this time to the best of its potential. With just a little effort from our side, we can turn our mobile devices into a powerful tool which can make us more efficient with our money, budgeting and organizational matters.