Use our UK Finance guide and learn by experience. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Sound Advice
Money Management Advice
Proper money management is the backbone of every successful company. If you're turning over a thousand a day, but spending a thousand and one, you're heading for disaster. Here are some tips to make sure that when you're dealing with your day to day banking or your investments for the future, your money is being handled properly.
The ABC's
Make sure that you understand the basics of any document that you're signing. Whether you're agreeing to make a monthly payment somewhere, make sure you understand what is required of you once you've signed, and what the company you're signing with is committing to do. Make sure you're happy with all their exceptions and amendments.
Ask Away
Ask questions if you don't understand something. Don't be afraid to look incompetent if you ask a question. In most cases, these documents use such intense language to make sure that they don't miss something out, that it leaves many people confused. Rather make sure you understand the document or get advice from someone than sign something that could cause serious repercussions later.
File it!
Before you business gets going with invoices and quotes and statements and legal documents, make sure that you have a filing system set up. Don't get caught having to spend hours trying to work out where a document comes from and whether its been handled or not. Have ‘inboxes', ‘outboxes', ‘read' and ‘yet to read' filing systems. Keep a book near the phone and take notes from phone calls: who you spoke to, what time, what they wanted and what you have to do in answer to that call. Keep ahead of your clients.
Low banking costs
Don't throw away money to unnecessary banking costs. You will incur costs. There's no way around that, but be clever. Do your banking in a way that will keep each transaction cost to a minimum. You'll be surprised how much money you spend in a month on banking charges and its money that could be used elsewhere. Investigate internet banking as it usually has the lowest charges. When opening your account, look for banking accounts that cater for you type of business. Sit down with a bank manager and explain the expected transactions that you'll make and see which account will work best for you.
PIN Security
It goes without saying. Be careful with your banking account PIN codes. Obviously, don't tell anyone. Not family, not friends, not anyone. Keep one copy of your PIN codes and make sure this doesn't fall into the wrong hands either.
Dangerous Debits
Debit orders have a sneaky way of falling through the cracks in your systems and you end up paying more, or paying for a longer period than you should. Then there's nightmares in trying to reclaim that money. So when setting up a debit order to pay your monthly bills etc, do so with an institution that has an easy means of cancelling such debit orders if you need to. Keep duplicates of all correspondence with banking institutions.
Investigate Insurance
Having a sensibly bought insurance package can do wonders to your budget. If you're overpaying each month, these little extra amounts all add up and over a year, you're looking at major wastage. Remember too that when applying for your insurance on your car or house etc, you'll be quizzed on a wide variety of questions regarding your driving history or location of your house. All these questions determine what your policy will cost you in the end. Remember too that if you falsify or ‘butter up' these facts to make your application seem better, this can qualify you to be black listed should you be caught. Honesty is best. After an accident, if it comes out that you falsified information, your insurer could refuse to pay and leave you in a tight position
Buy to Insure
Remember that whilst 2 different cars might vary only slightly in cost, they could vary greatly to insure. A more sporty looking option might impress your friends and cost you relatively a small amount extra, the extra options could cost you a lot more to insure. Sporty cars are more likely to be stolen than standard cars. Bear this in mind when purchasing your vehicle.
Dodgy Investments
Before making any investments, sit down and think carefully how much you're willing to risk. Both in time and money. Naturally, the higher the promised return, the higher the risk is. How much are you willing to risk? Decide this beforehand. Be very, very careful about investments that promise astronomical returns and low risk. If it sounds to good to be true, it probably is. Never rush into investments. Take your time and speak to advisors in the know before signing any documents.
Retire Comfortably
It's an unfortunate situation that many people find themselves in: they hit 40 years old and suddenly realize that they haven't started saving for their retirement. If only they'd started sooner. Don't put it off. Start immediately. As soon as you get a job, start saving. Even if it's a little bit initially, save something towards your retirement each month. It's a saving or investment that you wont regret
