Increase your financial IQ !

So the economic crisis has gotten to you like a bout of rash. You begin to examine every aspect of your finances in order to minimize any loss. The perceptive you know the importance of being financially savvy, but you don’t know where to start. Fret not; Swagger Essentials is here to increase your financial IQ!

1) Being paid what you’re worth

This is a tough one. With the economic downturn, the common catchphrase heard all around is, “be glad you still have a job”. Indeed, in this hour of uncertainty, it is nice to know you can still afford your 3 meals. Many people are settling for the next job they see on Classifieds and they are willing to cut their own pay by half.

While we salute their humility, it is not something we would advise. Taking a huge pay cut and still doing the same amount of work can be detrimental to your self esteem. Evaluate your own skills, know your strengths, and strike at the next golden job opportunity. We’re not raising your hopes that you will definitely find a high-paying job. We’re saying at least find one that more or less matches your pay.

Besides, we all know of a boss who is paid what he doesn’t deserve, no?

2) Clear all your credit card debts!

So you took our advice and cashed your credit card whenever you made a transaction. You earned all your reward points, and you even got a few good bargains thanks to tied in promotions with your bank credit card. Now the time of the month has come (no, not your menses) and you need to pay off your debt. You clear only half of your debt and you leave the rest till next month.

That is not a wise call. As you should know by now, credit card interests are almost exorbitant. While swiping that card gives you a taste of your status and can be very satisfying, you need to know when to stop. There is nothing wrong with spending your own money, just make sure to spend what you can.

Which brings us to our next point.

3) Live within your budget

Do you often find yourself having to scrimp and save by mid month? Do you find yourself having to borrow money; however much, from your peers? These are tell-tale signs that you are NOT living within your budget. You blow your expenses the week you get your pay check, because you fail to plan.

Budget might be a turn off word to many, but at least it saves you pride when you need not steal from your friends. Many people fail to factor in their daily expenses when it comes to apportioning their money.

Spending $20 on food per day might seem like a negligible amount that needs not be factored in our budget, but that is if you’re only planning to eat for the one day. Multiply that amount and a quarter of your income is lost. That is the pitfall for most people; they do not consider their daily expenses when it comes to spending.

They have this mindset: “if I spend less on food this month, I will be able to afford that Rolex watch!” And then they realized they made a miscalculation and it’s too late.

4) Invest, invest, invest

Expunge the thinking that stock investments are like gambling. Stock investing requires knowledge, strategies and proper execution; it is not grasping at straws, a nature typically of gambling. Read up on your alternatives to make even more money! The platform is already available for you; it is your choice if you want to take the plunge.

Even for the most conservative persons, you can still invest in mutual funds, which are relatively safer. Take up an investment plan with a reputable bank! Don’t just be mother goose and sit on your money; savour the sweet taste of high interest rates!

A man of intelligence knows an opportunity when he sees one!