Pensions Regulator

What is Secure Investment?

It is all too easy to fall into the trap of believing that a secure investment is one in which the capital value cannot fall. The guarantee of capital stability in a bank or building society is reassuring but it is an illusion. This is because the value of money is not static but changes due to inflation, and income varies as interest returns change from year to year.

Currently we are in a period of low inflation and very low interest rates - something that has not been seen for a number of years.

Money Management Tips

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Good money management skills are indispensable for a happy life. Such skills don’t only affect the financial aspect of your life. They could also affect your ability to make sound decisions in your relationships and emotional health. Because money management can have such a tremendous impact on your life, you have to hone your skills in it. Here are a few tips for wise money management that, when followed, will help improve the quality of your life through better financial control, increased savings, and better decision-making when it comes to spending.

1. Keep track of where your money is going.

It is very important that you know where exactly your money is going. Paying attention to how you are spending your money is a major step in managing your finances. It would be helpful if you write down all your expenditures for a certain period of time, say weekly or monthly. Once you have done this, you can evaluate your record and try to curtail all of your unnecessary expenses.

2.Spend your money wisely on things of lasting and/or appreciating value.

Most people spend their money on expensive things that have no lasting value, such as clothes, gadgets, and cars. They purchase these things at the expense of those that really matter like property, education, and insurance, among others. In other words, invest your money in things that would be useful to you in the long run.

3. Make a budget suited for you and make sure you stick to it.

Design a budget according to your income and expenditures. Make sure that a certain amount of your income goes to savings and reducing your debt. Analyze your budget and check what expenditures you can cut down on. Once you have a budget, make sure you follow it so that you would be able to avoid overspending, gain greater financial control, and eliminate stress.

4. Make sure to set aside some money.

Using your budget as a reference, determine how much money you can save. We are able to reserve some money for our rent, phone bills, and other obligations so it wouldn’t be that hard to treat savings as another form of obligation to ourselves. By having extra money kept in the bank, you’ll be sure to have something to use when an emergency arises, say, when all of a sudden you find yourself finding it hard to keep up with your credit card payments.

5. Go for debt consolidation if you think it will help you.

You may resort to debt consolidation. This involves merging all of your balances into one loan at a lower interest rate at an extended period. Doing so will help you in the short-run since your monthly expenditure will be reduced to an amount that you can handle given the limit of your income. However, you must consider that debt consolidation will keep you indebted for a longer time, thus stretching your interest payments and will result in a bigger overall amount that you have to pay.



Who was OPRA and what is it now?