It is disappointing to note that the entire schooling system never saw it fit to teach people about financial literacy. Lessons about money, for the majority, get to learn about them in real life when they start to make costly decisions such as spending all their money in the best online casino New Zealand.
Money is quite an interesting topic, and if you don’t take your time and dedicate your energy to studying it, you can be sure that you are a poor student and such will reflect throughout all the money choices you will be making with your life. To help you out, we have outlined some lessons we are sure you were never taught about them. Understand them so that you can become a better manager of your money.
Student loan must be treated with respect and you have to repay
Governments facilitate higher education for millions of students through student loan programs. For non-starters, most people never take student loans with the seriousness they out to take it. For them, it is free money from the government to help them get to college.
They only realize that it is a real loan that comes with real world consequences when they are out of college and they are now required to make the loan repayment. If only they knew, they wouldn’t have misused the loan as some of them and they would have treated it with some seriousness, knowing that it will be due some day and they will be required to pay it in full.
Never ignore the power of compound interest
When it comes to growing wealth, almost all of the successful people will tell how powerful compound interest is. However, not so many get this realization simply because the compound interests are usually very low and they can’t see how it could lead to substantial earning. However, irrespective of the rate for the compound interest, it is a real game changer when compounded over a period of time. This is how banks and most of the successful financial institutions ends up being extremely rich.
How to make money last
You may have been taught and given insights how to make money but I bet very few people out there were actually taught how to make money last. This is because the focus is always on earning and accumulating the money, and not so many people care the speed at which the money leave the pockets. This is something that is unique to every person and as an individual who is conscious about their money, it is entirely upon you to know how to keep your money last. For me, it starts with having a well laid out budget of the expenses and also leaving below my means.
How to haggle
Haggling is a money skill that no one will teach you if not the mean school of life. Most people that haggling is cheap and that some people ought not to haggle or there some places where haggling may be inappropriate. But look at it this way – haggling empowers you to save a considerable amount of money in purchase.
If anything, it still falls within the discipline of retaining money whereby you get to spend less and get more value. This is a skill you need to have if you want to start saving money on a number of items that you purchase. In addition to haggling, you should also teach yourself how to hunt for bargains, so that you can always save your money when doing your shopping.
The real dangers of being in debt
For most people, their first encounter with debt is with the student loan and some are so terrible at learning that never understand the lessons that comes with having huge student loan debt. They will still go and get indebted in an attempt to finance their lives with things they can’t actually afford. What no one is telling you is that you are slowly burying yourself and you will find it a real hurdle to come out of debt. Debts are financial traps that you should avoid with every chance you get.
How to improve your credit score
How to improve your credit score is something that is also hardly ever talked about. Perhaps it is because the population is so much in debt that no one is willing to talk about anything related to credit. A low credit score is limiting in a number of ways, and it is something you would naturally want to avoid. With a low credit score, you will not be able to apply for some loans, and mortgage companies may not even look at your mortgage applications.
But the good news is that there is increased awareness about low credit score and how to improve your score, and all you need to do is spend a couple of hours in the internet and you will know exactly how you can improve your score and most importantly, how you can still get the financial services you may need with a low score.
Not to trust the ads
It is sad that companies tell a lot of lies with their ads they still manage to get away with it and accumulate millions of sales from ignorant. This is not to say that all ads are bad, but a good number of them are very deceptive and have been designed to get you to buy whatever is being advertised. You have to be very careful with the ads and not just trust every claim they make. They have a way of appealing to your emotions and if you are not careful, you could keep on dumping your money due to ads without any remorse.
Not saving early
By now, you probably know that savings is good, but no one ever tells you that you should start saving as early as possible. If you aren’t saving already, be sure to start as soon as today. The best time to start saving was ten years ago, and the next best time to start saving is now.