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.