The following is a guest post
Financial literacy is a huge talking point in modern society, especially with local authorities throughout the U.S. now implementing relevant lessons into the high school curriculum. The fact remains that the UK and Australian governments have already made financial education mandatory for students, however, with the this new legislation set to take hold in 2014 and beyond. By blazing a trail for others to follow, these government bodies are looking to teach the fundamental principles of financial awareness and cultivate more positive behaviour among consumers and business owners alike.
Three Steps Towards Staying on Top of your Finances in 2013
While the current generation of adults may have missed the boat in terms of mandatory financial education, however, they still have a responsibility to manage their finances and set a good example to children. This requires a great deal of common sense and attention to detail, while individuals must also showcase a willingness to live frugally and within their existing means. Consider the following steps towards achieving financial security in 2013:
- Understand the Fundamental Principles of Budgeting and its Benefits: Budgeting is integral to the successful management of wealth, whether you are a member of the working poor or blessed with considerable financial capital. Budgeting is the basic process of balancing monthly outgoings with income, in order to determine a core amount of disposable income. This will enable you to calculate how much money is available once all necessary bills and debt repayments have been made, which in turn makes if far easier to live within your means.
- Determine your Tax Liability and Potential Benefit Entitlements: In terms of financial outgoings, your tax repayments must be given considerable priority. This is even more important given the changing nature of the workplace, as a growing number of individuals choose to work independently and seek their own financial security. Independent contractors and freelancers are required to manage their own tax liability, which means that you must determine a preferred method of working that suits your level of income and service. Depending on your exact status, you may even be eligible for certain benefit entitlements that can boost your levels of income.
- Live a Lifestyle that Suits your Income and Job Status: The term ‘living within your means’ is a fairly generic one, and it relates to maintaining a lifestyle that suits your income level, employment status and wider financial circumstances. This cannot be done successfully without first establishing a comprehensive overview of your situation, including the type of employment that you are engaged in and your annual remuneration. With a clear comprehension of your job security and salary, it is far easier to determine a frugal lifestyle and responsible attitude to spending that can help you to remain debt free.
The Last Word for Consumers
Are you struggling with your monthly budget or need advice on claiming a tax rebate? These individual issues can all contribute towards financial crisis, so it is important to develop your knowledge base and consult with reputable professionals in order to effectively manage your finances. Without taking a proactive approach, you run the risk of losing control and living well outside of your existing financial means.
