From Pounds to Pennies: Small But Important Financial Tips

by Adam on June 5, 2013

 A mountain is made up of millions of small stones. In a similar way, a mountain of money is made up of millions of pounds and (magical) pennies. It is therefore often said that the best way to achieve wealth is through building a mountain of money, stone by stone, pound by pound. From pounds to pennies, here are some seemingly small but important financial tips.

 

Budget

When it comes to money, everything starts with a budget. In fact, budgeting is most probably worthy of being deemed a rather big, great, large financial tip, considering it is the base of healthy finances.

Without budgeting you will simply not be able to keep your finances in control. Make sure you are aware of how much you roughly spend every month (with exaggerated calculations to avoid overspending) and measure that by your income, ensuring your income ties within your expenditure.

 

Remain on top of taxes 

Remaining on top of your taxes first and foremost ensures that you avoid getting into trouble with the tax authorities. It can also save you from missing out on thousands of pounds in the form of tax refunds.

Not understanding taxes means you do not understand tax refunds, and this can cost you money if – without knowing – you’re eligible for one.

Of course, dealing with numbers, figures and laws can get rather complicated and stressful, especially when it’s your money that’s involved. There are however, several companies online that deal with financial law, such as RIFT Tax Refund, that can help discern whether you’ve got all of your taxes in check and whether you’re eligible for a tax refund.

 

Pound Jar

Penny jars may be important, particularly if they’re made to include 5p, 10p and 20p coins. However, it will prove far more beneficial for you in the long run to have a pound jar.

If you’re working you’ll likely end most days with a pound or two in your pocket. Needless to say, the more of these pounds that you set aside to put in a jar, the more money you’ll have in a few weeks, months or even years.

 

More Savings

A pound jar shouldn’t be the only form of savings you keep however. You must set up a proper savings account with your bank, once you begin your career, in order that significant amount money is built up over time.

Regardless of what you do or where you live, you will most likely need to pay significant amounts of money from time to time throughout your lifetime. Savings accounts ensure that you always have some money stored up in the advents of such occurrences.

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