This is an article about financial responsibility and inculcating good economic values in our youth. Generally in society, people don't like to talk about three subjects - sex, politics and money and it is these three subjects that really affect society the most. If we want to move forward as a people then it is important to get over these mental blocks and social taboos. In this piece, I will try to tackle the subject of money. All too often, especially in poorer sections of society, people's attitude towards money causes them to go into debt, bankruptcy or even worse. santander online banking
Money is seen as the ticket to a rich and comfortable life but through the purchase of products and consumer goods. Expensive watches and shoes are first on the list of things that people like to buy with their money followed by a car and maybe a house. Money is never seen as security and that is one of the problems. Living within and even slightly below your means is generally a trait of the middle class and the old rich.
People who have good financial judgment and who have decoupled their sense of self worth with consuming will be less likely to get into financial trouble. But at the end of the day keeping yourself out of trouble is not that difficult especially in this day and age when information and knowledge are so freely available on the internet. There are essentially two rules to remember. The first rule is to have a savings account and put 25%-30% of your income in that account. This should be treated as your first line of defense against poverty. Once you get used to doing that, you can think about creating a second line of defense - that of investment in which you would put 25%-30% of the money in your savings account into your investment fund. Creating these defenses will give you a sense of security and keep money woes at bay. It will also force you to live within your means.
The second rule is to remain vigilant. Sign up for online banking and online credit card payments and log in to your accounts every Sunday. Take a look at the most recent transactions and keep an eye on your balances. Most people who get into debt usually get a shock when they see their bank statements because they haven't been paying attention. All of a sudden, they are in a big financial hole so constant vigilance goes a long way. It will literally take 5 minutes of your time once a week and it can save you a lot of problems. These two rules are really all it takes to stay out of most types of financial trouble. So please, be wise and be careful with your money.