Today's post is all about the most important pieces of financial advice passed down to me through the years from my grandparents and parents. These are five of the little gems of wisdom I've been lucky enough to collect, hope you guys enjoy them to:
1. It's important to have a credit card, but never pay interest. Contrary to all the horror stories all over the internet about credit cards and young 'uns nowadays, credit cards are actually very useful, any purchase over £100 on a credit card is covered with built-in insurance. So, if you make an expensive purchase, but don't receive the product or service you paid for, you can ask for a refund from your credit supplier who will take said company to task. Perfect for online purchases. But, make sure you pay your bill at the end of the month, otherwise you'll pay interest, so it will cost you.
2. Always invest. If you have more money than you need at the end of the month, put it in a savings account and once you have small amount in there, invest it in something. Size doesn't matter - it could be something small, like a piece of expensive (real, not costume) jewellery, or something big like real estate or a plot of land. These are your future fail-safes, the price of gold/diamonds and real estates tend to increase over time (you may have to hang through a recession), even if the interest on your savings doesn't.
3. Sometimes its not about the packaging, but the product. This piece of advice is about the smaller, everyday purchases. When it comes to buying products, pretty packaging is nice, but could a cheaper alternative save you more and do the same job just as well if not better? It's important to lay out your priorities and invest in the things most important to you.
4. Don't be greedy. It's okay to want financial security, or even to want to earn more money, but its important to know when to invest too.
5. Education is worth more than money. Education is the one thing you can never lose. It may be expensive, but as an investment it pays for itself many times over. If you can afford to, keep educating yourself- whether its by going to university to get a degree, taking classes at a nearby centre, or just playing around with new technology at home. As long as you have skills, you will stand out in the job market and be worth more to an employer or if you're self-employed, to yourself.
Do you have any pieces of advice to share?