Is it Good to Buy Lots of Cheap Things?

There are some people that think that as long as they are buying cheap things then they will not be overspending and they will still be able to have the pleasure of having lots of items. However, there are advantages and disadvantages in doing this and it is worth thinking about them before you do this sort of thing.

Value for money

There is a phrase which says ‘buy cheap; but twice’ which says something about value for money. It implies that if you buy something cheap it will not last very long and therefore it will have to be replaced. This is not always the case, but it is worth making sure that you are getting value for money form the item that you are buying. It can also be the case that if you buy something for too much money you will also not get value for money as you may just be paying extra for the brand name, rather than the item actually being better. It is therefore about finding a balance and making sure that you do not buy something that is so cheap it is not worth the money that you are paying even though it is not much.

It’s important to get value for money, whatever you’re buying.

Get into a buying habit

If you buy lots of cheap things it can get you into the habit of always buying. It can mean that you will always go into a shop with the expectation that you will be buying things. This means that you could just end up spending money for the sake of it and not because you need to or even really want to. Some people find that they really start to like buying things and perhaps can justify it because it is not for themselves but gifts or things like this. It can get to be a problem especially if the person starts buying more things than they can afford.

Still spend too much

Just because things are cheap, it does not mean that you can afford them. You might think that by shopping in cheap shops or only buying cheap things that you will be able to afford them. However, unless you keep a close check on how much you are spending and how much you have available to spend, you could still find that you will not be able to afford what you are buying. It is really important to make sure that you have bought everything that you have to before you start buying luxury items, even if they are cheap. You do not to run out of money before you have addressed your basic needs.

Costs less

Of course, buying cheaper things will mean that you are spending less money. If you have a very limited budget then you may have no choice but to do this.

It can be hard if you do not have a lot of money but like buying things. You may even have to buy cheap things because you just cannot afford more expensive ones. However, it is best to be really careful and try to get the best value for money from the items that you can. This might mean that you have to go without some items so that you can afford others or that you have to save up for a while before buying things. Try not to get into the habit of buying lots of things just because they are cheap, because you may find that the money will come in handy for other things. You may also find that you overspend even though you are buying cheaper items.

Should I Repay a Loan Early?

You might hear a lot of people saying that it is beneficial to repay a loan early. However, you may wonder whether this will be a good idea to do this for yourself. It is worth understanding the reasons why it might be a good idea but also things that need to be cautious of as well.

Cost

A loan usually costs more money, the longer you have it. This means that repaying it early will mean that it will not be so expensive. This is because you are charged interest on the money all the time that you owe it. Therefore, the sooner you repay it, the less interest you will have to pay. However, you need to check with the lender to see how much they will charge you for repaying the loan early. Some lenders will not charge you at all, but some will have an ‘early redemption fee’ which means they charge you a sum of money for paying it off early. This is something that may just be a reasonably small admin charge or could be a very large amount of money. You need to find out how much it is and then you will be able to calculate whether you will save more than this if you repay early. Calculate how much interest you will save if you repay the loan early and whether this is more or less than the fee. If you will save more in interest than the fee then it is worth repaying it early.

Repayments

Most loans such as those offered by Cobra will have regular repayments, although some might have a less rigid repayment schedule. These repayments might be hard for you to manage. It can be annoying too, having to pay out a big chunk of money each month, which might mean that you do not have so much left to pay for other things. Not having these repayments to make can be a big relief and can make you feel like you are freer and more relaxed as a result of not having this financial commitment.

The less debt you have, the better your credit rating should be.

Credit rating

If you have less debt then it usually will have a positive effect on your credit rating. This means that if you need to borrow money, rent a property or do something else that relies on you having a good credit rating, then you will be more likely to be successful if you have repaid the loan early. Most people will see this as a big positive.

Finding the money

Of course, you will need to find the money to repay the loan. This could be a big hurdle to some people. If you already find it tricky to make ends meet, then finding some extra money to help with repaying a loan may seem almost impossible. However, if you can even make a small repayment it will help you as your interest charges will be lower. Therefore, it will be really useful to try to find the money to be able to do this. You might therefore be able to think of some ways that you can earn more money or that you can spend less. It is worth brainstorming some ideas and picking a selection of things to try so that you can find a way that works well and will allow you to start repaying. Even if it is just a small amount to start with, hopefully you will get better and better at earning more and spending less so that you will be able to increasingly be able to repay more and more of the loan until it is all paid off.

Is it worth Saving money?

We might often hear that it is a good idea to save some money. However, this is not an easy thing to do and so we may wonder whether it is actually worth it or not. It can be good to think about the reasons why people might want to save money and then we can decide whether we think it is a good idea for us to do it as well.

To get some return on it

If we have savings and we put them in a bank or building society we will be paid some interest on the money. This amount will vary a lot depending on the company that we decide to save with and the type of savings account we have. If we want instant access to our money, then we will not get that much interest on it. However, if we are happen to tie our money up, perhaps in a notice account or for a fixed term (i.e. a certain a mount of time such as a year) then we will get more interest in it. It can be good to know that our money is giving us some return because otherwise we may as well be spending it.

To have something to fall back on

Many people will save money because they like to have something to fall back on. What this means is that they like to have a sum of money there so if they need to buy something in an emergency they have some there. This might be a bill that suddenly arrives that they had forgotten about, replacing a broken white good or having the car repaired. We will often find that there are situations where we need some extra money and this can help us. It can also give us peace of mind to know that we have the money there in case we need it in the future.

To save up for something specific

Many people will save up because there is something specific that they would like to buy. This might be something small, like a new outfit or it might be something larger like a car or a deposit on a house. There are many different things that we might want to save up for. Saving is useful because it means that we can still buy more expensive items but we do not need to borrow money in order to do so. While borrowing can be extremely useful in some circumstances, it can be cheaper to pay for things from money that you have saved rather than borrowing the money, so if you can avoid this then it is better to do so.

So, as you can see, it can be really useful to save some money if you can. This may not always be easy, but savings can be useful in many ways. Whether you are saving up to buy something specific, want some money to fall back on or want to collect some interest on the money. However, if you have a loan, then it could be better to use your money to repay this rather than saving. This is because the loan will be costing you money, usually a lot more than you get in interest on savings. If you repay this you can be a lot better off financially. If you do need money in an emergency and do not have any, there may be other loans that you can use, but hopefully you will not be in this situation anyway if you have a good way to make sure that you stay in control of your spending. If you want to buy a larger item, then you may be wise to wait longer if you can and repay your loan before you then start to save up for it.

Do I have to Work if I want to be Rich?

There are many people that aspire to be rich. It can be easy to think that it could be simple to be rich and that not much work has to be done. We might look at certain types of rich people and think that they have it easy and we could easily make money that way ourselves. It is worth knowing how the people become rich and what they have to do to stay that way as you will realise that you will have to work hard if you want to be rich.

Youtubers

There are lot of youtubers that make a lot of money form what they do. However, it is worth bearing in mind that there are loads of youtubers and only a small percentage of them make a lot of money from what they do. They have had to find a way to stand out from the crowd, doing something original or doing something really well. They also need good equipment to do it and they will have to use marketing skills to get people to watch the videos. Many of them will spend two or three times longer editing their videos than they will filming them and they will take time to plan them as well. This means that for some of them they can be working very long days. They also rely on advertising to fund them and this is not something that they can all find easily.

Business owners

Owning a business sounds easy as you can let your staff do all of the work. However, you will have had to come up with the business idea to start with, spend time building it p and keep researching to make sure that there is still a market for what you do. You cannot rest as you need to make sure that it is operating efficiently and that you are still making good money for it. Only a few businesses are massively successful and make loads of money.

Film stars

It can be easy to think that a film star has it easy. However, they have to know how to act, be able to learn their lines and be successful in auditions. They will have to work their way up too, many starting in small roles and not earning enough from their acting. Only a few people make it to the top and they tend to be good looking and young and it is possible that they may also know the right people so that they can land the best roles.

Property owners

It might seem really easy to make money form property. Just get property and rent it out and collect the money. However, you have to find the money to buy the property which might be money you own or you may have to borrow. You have to keep the property in a good state of repair and decorate it and repay your mortgage using the rent. You will also need to make sure that you always have someone renting it, which may not be that easy. You will need to find the right properties that you know you will be able to make money from.

Inherited rich

It can be really easy to think that the inherited rich just sit about all day and spend the money that they have inherited. However, it tends not to be like this. They may have inherited property as well, which will need looking after. Older houses often need a lot of work and this is expensive so they may need to think of ways to make an income from it. Even if they do not have this to do, they will need to make sure that they are investing their money wisely to pay them a good income. If they just spend the money it will run out. They may also decide to give some money to charity and will spend some time considering this as well.

What are the Easiest Ways to Make Money?

There are actually lots of ways to make money. Many of us are looking for really easy ways to make a bit extra. There is no easy way to become a millionaire, but if you just want a little extra money, there are a few things you can do which could help and will be really easy.

Sell things you do not need anymore

It is really easy to sell things. There are lots of places that we can sell online or offline such as car boot sales, online auctions or social media pages. It takes very little effort to list items for sale and you could potentially make quite a bit of money from them. Many of us have things that we no longer need and therefore will find that we can easily get rid of them and the extra money will be really handy. Of course, once you have sold them you will not be able to make money form them again so you will just get a lump sum which you will have once. It will still be handy though.

Ensure you are not overspending

It is really wise to make sure that you are not spending more than necessary for things. You need to think about comparing the price on everything that you buy and then you will be able to choose the cheapest option. Of course, you will want to make sure that you are still getting good value for money form the items as well. It could means that you will need to switch providers, suppliers and retailers and it will take some time to do a bit of research to check out which will be cheaper. However, it can give a you a big return for very little spending.

Put your savings in a higher interest account

This is extremely simple. If you have savings, make sure that you keep a check on how the interest rate that you are getting compares to other accounts. You could find that you will make quite a bit more money if you put the money in a different place. Savings accounts do not tend to pay a large amount of money but it is a good idea to make sure that you are not getting significantly less than average. It is also worth noting that you can get more interest if you are prepared to tie the money up, perhaps in a bond or a notice account. If you are not going to be using the money for a while this could be worth it.

Rent out part of your home

If you own your home then you may be able to rent out some of it to get some money. This could mean renting out a spare room to a lodger or renting out some storage space or even the driveway. There are different things that you could potentially do that might bring in some extra money. You will have to check that your insurance company and mortgage lender are happy with this idea first though.

Do some online work

If you want to earn a bit extra then online work could be helpful. This is because you will normally be working from home so you do not have to worry about travel or childcare arrangements. You can often find small jobs to, which although will not pay huge amounts of money, are easy to complete and to fit around any other jobs that you have already.

There is no really easy answer but there are plenty of things that you can do to get a bit of extra money without too much effort. These things could all add up which will make a big difference to your finances overall.