Monday, 22 April 2019

HOW I MANAGE MY MONEY

francisca rockey, lifestyle blogger, fitness blogger, beauty blogger, fashion blogger, small blogger, travel blogger
I've been meaning to write this blog post for the longest time but just never got round to it, one of those posts sitting in your drafts waiting to be finished and today I'm finishing and publishing it.

Money can be a very taboo subject, I'm not entirely sure why but I guess people aren't comfortable with being open about their finances and in my opinion, it shouldn't be that way. We can learn a lot from each other if we're open and honest about our income, ways to increase income, getting out of debt or building your credit score. I'm going to share with you how I manage my money and how I've built a perfect credit score.

So, I have 4 bank cards. One Barclays debit card which I use for all direct debits and bills and holds my everyday saving account and help to buy ISA. A Santander student account which my student loan goes into and with this I get a free railcard and £1500 overdraft. A Monzo card which I transfer disposable money into and I also have a savings pot within this account and lastly, a Barclays initial credit card which I use to pay for anything that requires insurance e.g. holidays. I would advise having multiple cards and savings accounts to get a better hand on your finances rather than keeping all of your money in the one account.

As soon as I get paid, I put the exact amount needed to cover my direct debits and bills into my Barclays debit card, any money left over I put into my Monzo card. Monzo is a digital mobile-only bank, you can use it how you would any other debit card in that you put money into it and can take money out of it. The great thing about Monzo is that you can track your day to day spending and set caps on your spending, restrict certain payments e.g. gambling and if you open a savings pot, you can round up transactions and the pennies can be put start into your pot. Get yourself a Monzo card here and we'll both get £5!

Moving onto having a credit card and how I turned my credit score around. A year ago, my credit score was poor, not because I was 18 and a reckless spender but because I couldn't work for 2-3 months for a personal reason and so I had to rely on it to get me through that time. It has taken me a year to learn how to manage my money better and improve my credit score and as of 06/04/18, I now have a credit score of 999. 

Ways to improve your credit score:
1. Don't make too many credit applications in a short period of time
2. Make sure you're paying off your direct debits in full each month (phone bill, gym memberships, broadband etc.) and on time
3. When using your credit card for big purchases, make sure you're able to pay the minimum payment each month or more
4. Spend within your limits and only use your credit card up to 50% or less of your monthly wage
5. Register to vote. I'm not entirely sure why but being on the electoral helps
6. Make sure you have a good overall view on your finances 
7. Use your credit card little and often to maintain your credit score 

How do you manage your money?

Fran
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