The Three Things One Needs To Know About Personal Finance

Personal finance is not a difficult subject to tackle -- it does not need learners to identify certain ideas or concepts. All one needs in financial education is discipline. The ability to identify money one could spend and should keep is all what personal finance truly is.

The first thing any saver should know is prioritising the items on their list of financial responsibilities. The first of these would be bills, second of which would be their debts and loans. 

Last would be the things they want or do not need immediately. It is easy to lay down on paper, but could be very difficult to enforce in one's monthly or regular income.

The best way to begin is to do it slowly with small things. Set reminders to pay for bills first before spending any money on items that are below-priority. Once the body memorizes these by instinct, one just spends money on things in an organised manner. Until eventually, one develops the discipline effectively.

Third, the only way to ensure one's financial success and discipline is to have a financial goal. Student debt holders must calculate the amount they need to repay on a monthly basis to ensure they pay the right monthly amounts. Focus on this financial goal; break into small pieces the objectives needed to achieve these bigger goals and focus on each one slowly.

Personal Finance Skills Is That 'One Skill' That You Need To Learn To Manage Everything

People lack time in managing their finances when in fact they should allot more time to the task. Money management helps one allocate all expenses and incomes to see a bigger picture of their finances to determine their next financial move. 

According to The Hindu, despite the trade skills one learns in school to earn money, poor money management will result into an unsuccessful career endeavour. Higher income is never a guarantee, according to The Hindu. This makes financial management "that one skill that can help you manage everything.

A good look into one's income and spending daily helps them prioritise and de-prioritise items according to the needs of the time. Financing repayments for a house is one -- another would be education of children. Spending money to satisfy a whim because one does not enjoy their money is not a good discipline for money.

Spending is a juggling act; priorities are set forward before any personal spending can be achieved. At least 50% of one's income heads to priority bills and property concerns. Next would be one's financing and other bills related to loans, mortgages and credit cards. Last would be other concerns in the future, such as an emergency fund for personal money management.

Living with a blind spending budget is an easy way to find deficits in one's budget and ultimately into personal bankruptcy. Improper financial allocations -- namely uncontrolled urges to spend -- are gateways to poor financial management.

Reported Fraud In The United Kingdom Has Dropped Sharply According To Report

According to accountancy and business advisory company BDO, UK's financial sector reports less fraud by 62 per cent to only £214.9m in 2016 -- a figure the company attributes to the increased public and regulatory scrutiny of financial services following the 2008 financial crisis. However, BDO warns the figures are only "the tip of the iceberg."

According to BDO Partner and Fraud Chief Kaley Crossthwaite, the new requirements on companies in the regulated sector specifically for better systems and controls had helped improve fraud tracing and surveillance. Companies not implementing proper systems as required the regulator immensely fines.

While actual fraud figures have dropped, accusations from reported fraud have increased by 31 per cent -- a five-year high of £21bn possibly pocketed illegally by certain company officials. According to BDO, if police forces are given more resource to handle complex fraud cases and undertake more investigations, the figures may go beyond the small number.

Ms Crossthwaite said companies often try to resolve fraud matters privately to avoid asset loss and minimise publicised damages. Her company also works with majority of these cases.

To further handle fraud in the United Kingdom, new measures may be installed such as the Criminal Finance Bill that will go through its final debate in parliament. The Bill could prevent tax fraud and the seemingly-legal tax-evasion procedures used by companies by finding legal loopholes.

Simplifying Your Finances For 2017

Globally, demonetisation is now a trend. Consumers are using applications such as Paypal or their credit cards to purchase items worldwide. Couriers are working efficiently to deliver items to one's door at a guaranteed time. Finances can instantly disappear under a consumer's nose if they do not monitor them properly.

In 2017, it pays to know about technologies that help you manage your finances and having the right attitude to handle your money. Discipline is still important along with a certain few others.

Mind Your Retirement

Always save up at least 40% of your salary for your retirement. State retirement plans look more promising than corporate-provided plans. Also, private retirement plans are great to look into. An ideal percentage to set aside from your monthly income would be 50%.

Emergency

In any case, always have at least 3 months worth of income with you at any time. You could lose money immediately to an emergency. One should always have money at the ready for any emergency involving health or unemployment.

Think Progressively

Financial technologies that exist today are still in their infant phases. Banks offer your accounts an online way to manage your finances. Look through your options and understand how they work; they can help you monitor your spending especially if you are a savvy buyer in online stores.

Properties in the United Kingdom Fall In Prices

UK's mortgage costs have fallen to record laws. Homeowners in the United Kingdom could have hundreds of pounds in savings on repayment costs.

Competition among lenders is a primary factor according to moneyfacts.co.uk. Homeowners on today's typical 2.98 per cent rate can save more than £100 monthly compared to two years ago.

Lenders ensured households will always be on the competitive rate. Some are advised to switch providers when possible to retain the competitiveness of the overall rate.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “Just 20 months ago, the average two-year fixed rate stood at 2.97 per cent.

"This means that borrowers coming to the end of a two-year fixed deal will find they can now get the extra security of a longer term for a similar price to their old two-year deal."

Fixing for a longer term could protect families against financial shocks in the coming years.

Ms Nelson added: “With the gap between the average two-year fixed rate and the average five-year fixed rate standing at just 0.63 per cent today, borrowers can now opt for the security of a longer term fixed rate with little extra cost to their monthly repayments.

“Borrowers coming to the end of their fixed deal or those who are currently sitting on their SVR should seriously consider opting for a new fixed rate now, as there is no way of telling how low these deals can go.”

Equities Might Be The Best Thing To Invest In

It's the turn of the century... at least for Britain and its pensioners.

Pension living is becoming huge trouble than convenience for most people. Defined-benefit retirees are now struggling as corporate retirement plans have a huge deficit to fill in.

In a span of just five years, the UK's retirement deficit grew. Now, state pension and corporate pensions are things you couldn't depend on.

So if you're going for a personal pension plan, I suggest you go with your gut on other options. Especially equity-based ones.

One has to admit that what I'm suggesting is outrageous. Corporations are growing profits while you're stuck in the gutter.

It's the reality of the situation I'm getting at. Investors and beneficiaries are always a corporation's priority. Investing in corporate funds and group funds that diversify your portfolio to each of these companies help.

For just a few years you can grow your money through a personal pension plan. Equities are growing especially in the tourism and export industries.

The weakening pound sterling -- with a little help from BoE's almost-negative interest rates -- is contributing to the favours of these industries.

It's important to invest as soon as you can; it's possible that foreign investors may take advantage of the weak pound and invest in these areas where they can. An inflated stock price can reach a bubble and everyone knows what that means.

Financial Security Is More Important Than Ever Today!

The news of the Wells Fargo massive identity theft reminded me that even the UK's financial district -- the top banking centre -- lacked in security and systemic improvement -- that can ultimately protect consumers.

Wells Fargo had 5,000 employees fired over unauthorised account openings. In the UK, wrongly-sold payment protection insurance policies earned about £37bn.

This shows that identity theft and mindfulness of one's financial accounts truly matter.

To ensure we get them all locked out of our accounts, make sure that your account activity is properly monitored with the following steps.

Account Activity

Keep close watch over your bank and credit card accounts. If you are using paper statements, make sure that you read them when they come in the mail. Read each notification you have with your digital accounts.

Tools

If you have digital accounts, banks will have a tool that would help you monitor your account balance from anywhere. It could be a text or email alert that you could subscribe to.

Monitor Your Bank Reports

Keep close watch over your credit reports for each of your bank accounts. If you spot someone has opened an account in your name and it becomes delinquent, you have two other accounts to support your claim that you are not that other person.