Good Financial Decisions That You Will Never Regret

How to be great at personal finances…

Most of us would like to be better at managing our money. It often seems like something of a minefield when it comes to negotiating things like budgeting and saving and how to make the best of what you have. While many financial decisions are subjective in terms of outcome, there are some that you will never regret such as saving for an emergency fund so you never have to find a loan for, say, a car repair. Having an emergency fund can also be useful when your only options are high interest loans for people with bad credit.

Starting to save early

Whether it’s putting money aside for your retirement or to ensure that you have the money to get married, buy a house, have pets or launch a business further down the line, saving is always a good idea. And the earlier that you start to save, the more you will be able to accumulate in your savings pot with relatively little effort.

Paying into a pension

Saving for retirement is another great financial decision that you’re highly unlikely to regret. Most of us underestimate just how much money we are going to need for retirement and it’s difficult to save for it without using a dedicated retirement product. Pension funds look to increase the investment you make when paying into them by investing in a way that will help your money to grow.

Always clearing your balances

If you’re only ever paying the minimum on loans and credit cards then you’ll most likely always find yourself in debt. Making overpayments and clearing balances is always a good decision because it will keep you debt free and help to reduce the amount of interest that you pay on whatever it is that you owe.

Learning how to budget

Budgeting is such a basic skill and yet it holds the key to financial success at every age, from being able to ensure that you’re living within your means, to saving for big financial goals. There are lots of tools to help you budget today, including savings and budgeting apps and good old pen and ink.

Creating a rainy day fund

None of us knows what’s likely to happen to us as we travel down the road of life but if you’ve got something set aside in the bank to help you cope then you’ve got more chance than most of getting through it. A rainy day fund is always a good idea, even if you’re just putting a little into it every month. It could give you financial freedom at a critical point in life.

Saving for children’s education

Putting children through education costs money. So, if you want your offspring to be educated in a certain way then you’re going to need to start saving as soon as you can. Although an expensive education doesn’t guarantee happiness and success in life, it’s a good financial decision to start putting money aside so that your children have options.

Buying a property

Despite the claims that “generation rent” is going to be the reality for a large number of people, it’s still preferable to buy a property if you’re able. However, whether this is a good financial decision will depend on a number of factors, such as whether you can afford the mortgage repayments and how focused you are on getting mortgage free.