There are many different ways to borrow money and a lot of them are quite different. This means that when you do need or want to borrow money you should fairly easily be able to pick the most appropriate loan. However, there are some that are similar such as a store card and credit card. It is good to understand what the main differences are between them so that you can choose the most appropriate.
Where you can use them
A store card can normally only be used when buying things in a particularly store or chain of stores. So, if you have one for a specific retailer, you will only be able to use it at the branches of that retailer. So, you can use it in any branch across the country, but it will not be accepted in any other shop or be able to used when buying online apart from that particular retailer. Some has parents stores or sister stores that you might be able to spend them at as well but there will still be limitations.
With a credit card you can use it in most places. There will be some shops that do not accept credit cards at all but they are unlikely to have a store card either, so this may not be relevant in your decision. However, being able to use a card across lots of different retailers could be important. It has advantages in that you will be able to use it anywhere and take advantage of the credit that you get. However, this could be see as a disadvantage as it will mean that it is easy to spend lots of money on lots of different things and it could lead you to getting into more debt.
Discounts and offers
With a store card the card holders might get benefits. Sometimes they get discounts on products or they might get preview sale prices and things like this. If it is for a shop that is used regularly those discounts could be worth a lot of money and it could be well worth getting the card. Most credit cards do not offer anything like this. However, there are a few cards that will offer a small amount of cashback on spending. These do tend to charge extra high interest though so are only worth considering if you are really confident that you will be able to repay the full balance of the card each month and therefore pay no interest.
The cost of store cards can sometimes be a bit higher than a credit card. Both tend to charge high interest though compared with some other types of lending. It is well worth consider this cost. If you intend to pay the full balance each month so that you so not have to pay any interest then it is less relevant but it is still worth making sure you are aware of the difference just in case you are ever in the situation where you do not have the money to repay the full balance.
So, it is not really an easy decision to make, but you will be able to judge it based on your own circumstance. Consider why you are considering getting a card and then think about which will suit your needs the best. However, be sure to think about the cost. Consider whether having either card will be a good idea for you and if you feel that it will be okay and that you will be able to only use it when you really need to buy things not just because you have all of the credit that you can spend.
Most people have a mobile phone and they probably want to keep the amount that they spend on it down to a minimum. However, there are all sorts of costs associated with a mobile phone and it is a good idea to know what they are and think about how these can be reduced.
Cost of the phone
For some people it is the cost of the phone that s the biggest expense. This depends on whether you have an up to date phone and a popular brand which has a lot of functions or something more simple. Sometimes the cost of the phone is incorporated into the contract and sometimes it is not. It is worth checking out which of these is cheaper. Often if the cost of the phone is incorporated into the contract you will pay a lot more for it, compared to buying it outright. This is because you effectively have to pay interest on it as you are spreading the payments over a series of months rather than paying it all in one go. If you cannot afford to pay it all in one go, then you may need to think about whether it will be cheaper to get a loan via somewhere like Omacl.co.uk to buy it as this could be cheaper than having it incorporated into the contract. You should also make sure that you are not getting a phone that is unnecessarily expensive. We pay a lot extra for popular brands when there may be other phones which have all of the same features but cost a lot less. We will also find that some phones have a lot of features that we do not use and so it is worth making sure that we are not paying extra for things that are of no use to us.
Cost of calls
Most people will use a mobile phone to make calls. The cost of the calls may be incorporated into the contract and it is important for you to make sure that you will use the phone enough to make phone calls to justify this. You may find that it is cheaper to pay for calls that you make per call rather than having it as part of a contract.
Cost of texts
You may find that you will get a certain amount of free texts with your contract. This is something that you might find extremely useful if you text a lot. However, not everyone does text a lot and therefore you will need to decide whether this is something that you will make good use of.
Costs of data
Data can be expensive if it is not incorporated into a contract but you may not need much. If you have home wi-fi and use your phone mainly at home then you will not need to pay extra for it. The same applies if you tend to use it at other peoples houses or in shops and use their wi-fi. However, if you use it a lot outside and pay for the data, then you may find that it is cheaper to have some incorporated into your contract.
So, it is a case of making sure that you are getting good value for money from the deal that you have. You need to think about the money that you are spending and whether you think it is really necessary. Consider why you want the particular phone, data, texts, calls and whether you really need to pay as much as you are paying. Also think about whether you could reduce your usage by perhaps using a landline, email or things like that which could provide a similar service but for less money.
If you want to buy a home, then you will be likely to need to get a mortgage to pay for it. When you apply for a mortgage you will need to save up for a deposit to put towards it in most cases. This is usually five or ten percent of the value of the property so it is a significant sum of money. It can therefore seem rather daunting to save up that much. However, there are things that you can do to make it easier.
Work out how much you need
To start with you will need to work out how much money you need for the deposit. At this stage you will not have a specific house in mind because it will take you too long to save the deposit for it still to be available. However, you might be able to work out what sort of house you might like, how much house in that area cost and therefore how much you might need. Alternatively, you could calculate how much mortgage you are likely to get based on your income and then how much deposit you would need to put towards that. It is best to do both calculations so you can decide how much you want to save up.
Set up a direct debit
It is wise to set up a direct debit form your current account to a savings account to save regularly. Set up the payment to come out when you first get paid and this will enable you to be sure that there will be enough money available in the account to pay for it. This will help you to budget for the rest of the month and make sure that you have enough for everything that you need. It is important that you set the direct debit for the right amount of money. Consider how much you want to save as well as how much you can afford to save. If you do not normally have enough money available to afford to save the amount that you want to save, then you may have to come up with a plan of how you will be able to do this.
Spend less on other things
It might be the case that you will be able to cut back your spending elsewhere. Often, we buy lots of things that are fun or make us happy but are not necessary. These are the sorts of things that we might be able to cut back on so that we have more money available to put towards the mortgage deposit. It can also be wise to ask yourself whether you really need things when your buying items to check that you are happy with buying them or if you would rather that money went towards your mortgage deposit. You might also be wise to compare prices on everything that you buy as well and think about whether you should buy it at all. Buying cheaper can help you to save money in some cases, but do think about quality and value for money as well. We do not want to be paying more than necessary for things, but we also do not want to pay so little that we get a poor quality product or service.
Find ways of making extra money
It could be a good idea to think about ways to make some extra money as well. If you can get more money then you can boost the savings and you will be able to get your deposit saved up more quickly. You can try all sorts of things, such as selling things you no longer need, working extra hours or getting an additional job, doing some freelance work, finding some online work or something like this.
As parents, we teach our children all sorts of things and that learning is supplemented by school. However, there are some areas which tend to be forgotten and one of those is money and finance. Although, there is some teaching on the curriculum it is not very much and so children may need parents to guide them in this teaching.
Set a good example
It is a good idea to set a good example to your children with regards to your finances. They will notice your behaviour and copy you. Therefore, you need to be careful with what you are doing. By showing them good habits, you will be helping your own finances too. So, make sure that they see you budgeting and not overspending, that they see you saving and repaying loans on time. It can be good to explain to them what you are doing at times and why you are making particular spending decisions. So, if they want something and you do not want to buy it for them explain why. Do not just say it is too expensive but explain that you only have a certain amount of money to spend each week and if you buy that item there will be nothing left to buy food. Overexplaining this will start them thinking about budgeting money even at a young age.
Get them a bank account and money box
It can be a good idea to set them up a bank account when they are very young and get them a money box. Then if they have any money you can show them how to put it into a savings account. Teaching them how to look after their money and not always to spend it can be very handy. Knowing that you can save up for things and that you do not always have to spend can be very useful. There are some adults that spend all the money they have because they have just never been shown that there are benefits to saving money.
Teach them about savings
It is good to help them to understand that if they have savings then they will get paid interest on them. They should be able to understand that there are advantages to keeping money in a bank. It is also good to explain to them that there are other benefits too as they can save up for expensive items and they have money to fall back on if they suddenly need to buy things and do not have the money.
Teach them about debt
As they get older it is wise to teach them about borrowing. Make sure that they get a balanced view and understanding of good and bad debt. It is important to understand the ways that debt can help us as well as the problems that it can potentially cause as well. Many youngsters will grow up with a fear of debt which may stop them from getting a loan and going to university or stop them from getting a mortgage and buying a home. While it is important to be cautious it is also so important to realise the importance of borrowing money.
Teach them to budget
It can be a really good idea to teach children about budgeting. There are often opportunities to do this if they want to buy something and do not have enough money to do so. If they get regular pocket money but always spend it all on something but want something else, you can teach how they can reduce their spending in one area so that they can afford other things or that they may need to save up their pocket money for a while to afford what they need.
There are many ways that we can make money online and one of them is to make money form an affiliate scheme. This might sound a bit dodgy but it isn’t not as long as you do it properly and it can be a way to earn some extra money. It is good to understand how they work and then you can figure out whether it will be a good idea for you to do.
What is an Affiliate Scheme?
An affiliate scheme is where a company will pay you if you create leads that result in sales of their products. For example, Amazon offers this, where if you give someone your affiliate link and they use it to buy items from Amazon, they will then pay their affiliates a percentage of the sale price. Some companies offer this on all of their items, but Amazon offers it only on some of their items. It is a way to make money from people buying things without actually having to hold any stock. There are some companies that you can go through which will have a big selection of different sellers that you can choose from or you can go directly to some. For example, you can get paid directly from Amazon for their affiliate scheme but for some you may have to go through a accompany such as Tradedoubler and they will provide you with affiliate links for many different retailers.
How do you set it up?
You will need a way for people to see the products that you are linking to and this is most likely to be some sort of website. You could set the website up just like a shop, with items listed on it but when a person chooses to buy that item it will take them to the retailer’s website through the affiliate link and if they buy it you get paid. However, there are other more subtle ways too. You might want to create an informative page and have a shop within it or just links saying where you can buy products. For example, you could have a website dedicated to a certain series of books. Have information about the author and the books, the characters and things like that. Then have a page which links to where you can buy the books which goes to Amazon where they can but the book. There are rules though about this sort of site – you need to state that the links on your site are affiliate links and that you will make income from sales made through them. This is a fairly new rule but if you do not make this clear on your website you could risk having the site shut down.
Will it work for me?
This may sound fairly straightforward. Even if you cannot set up the website yourself, you could pay someone to do it and then wait for the income to come in. However, it is never this simple to make money. You will need to be sure of a few things. Firstly. You need to try to tap into a market which is either new and you can take advantage of, a niche area where there not much competition or one that is currently popular. So, you need to think carefully about the sorts of things that you are doing. You will then also need to promote the website so that people can see it. It is easy to think that a website will promote itself but it will not. Having a website with no promotion is like printing leaflets and leaving them at home. You will need to think about how you will let people know about it using different advertising techniques, setting up a social media presence and things like that. It is well worth learning all about marketing before you start as it is vital to understand it and if you wait to learn on the job it may mean that it takes a long time before you can start to see any money coming in.