5 Financial Woes You Need Know

Life is never easy financially. It takes a lot of time, work and effort to make the money you need to live a modest and comfortable lifestyle. It takes even more if you want to live a life of luxury! No matter how much money you have today though, you might be setting yourself up to face a number of financial woes in the future. Here are 5 of the most problematic financial woes you never want to face:

Interest Rate Hike

As a saver, you might be jumping up and joy for this one. However, banks rarely pass on this kind of benefit in full. But they’ll definitely pass it on to your mortgage! If you’re on a variable rate right now, be wary of any economic or political turbulence that might initiate a long-term interest rate rise. It will also affect all other kinds of lending. Always keep track of any funds or borrowing that might see changes from banking movements.

Pension Pothole

There have been so many terrible tales in the press of pension funds disappearing. More pensions than you think have seen a sizeable chunk erode from the overall pot. As you approach the age of sixty, you might be ready to think about slowing down your work life shortly. But if your pension is there, you might never see freedom from your job. Start early, and try to pay in as much as you want to come back out. Keep an eye on the fund every year, and be prepared to move it if you can find a better, more secure deal.

Credit Card Black Hole

Credit cards are essential in life these days. But it is all too easy to get into trouble with them. Clearing the entire debt each month is the only way to avoid paying interest on everything you’ve bought. Do you really want to be paying more than the ticket price for your food or clothes? Credit cards typically charge compound interest, so you’ll be paying interest on last month’s interest too. Find a better credit card deal online by checking websites like reviews.credit card against your typical usage. Use a tracker or spreadsheet, and stick to a budget.

Fraud

Identity theft, bank account thefts, and credit taken in your name can all harm you financially. It takes time and a fair bit of running around for you to clear your name on your credit rating when something like this happens. To protect yourself from fraud happening in the first place, make sure you change your account passwords regularly. Never tell anyone your details, and check your credit score each quarter. Make sure your computers and devices are running the most up to date OS and virus protection software.

Redundancy

Redundancies happen. Your response is critical here. Make sure you always have an up to date resume and three months’ salary in savings. If you hear a rumor that your company is winding down, start applying for other jobs. Take agency work while you wait for that next career move to come along. You don’t have time to waste! Take care of you and your family by avoiding these financial woes.