It’s easy to assume that people who are organised and smart with their money have always been this way, and find it easy to do so. However this is a skill that anyone can learn, and being in control of your finances is one of the best things you can do in your adult life. Even if you’re currently in debt or have been before, it doesn’t mean you can’t turn over a new leaf with your finances. In fact, once you have lived through the stress that debt and being out of control can be, it can make you more cautious and make smarter choices in future. Here are three things that financially savvy people do, and that you can too.

They Spend Less Than They Earn

This seems like such a simple concept, but it’s something that so many of us simply don’t practice in our financial lives. We spend on credit cards and use loans for things we don’t really need. We borrow money from friends and family, meaning we’re spending money we don’t have (or haven’t earned yet). Come the following month, we’re already behind due to overspending the month before. It might feel like you’re not a big spender, but chances are there are lots of ways you can cut down costs so that you’re spending less than you earn. Takeaway food and coffees, magazines, digital subscriptions and socializing can all add up. It’s not to say you need to give up everything that you love, but do have a careful look at what you spend and see where you can cut back. Spending less than you earn means you can start saving instead.

They Budget Carefully

Speaking of looking carefully at what you’re spending, on of the very best ways you can do this is to create a budget. When you know exactly what comes in each month and what goes out, it puts you in control of your money. Address each area of your budget- shop around for utilities to make sure you’re getting the best deals. Write shopping lists and meal plans to make sure you stick to your grocery budget. Cut back on luxuries that you probably won’t really miss once they’re gone. There are lots of apps and budgeting software programs out there these days that make this so easy- so take a look at them.

They Put Their Money to Work

Once they’ve saved some money, financially savvy people know how to put this to work. For example, investing savings well will turn a little money into a lot without much extra effort. You could invest in property, business or look into qualcomm stock if you’re knowledgeable about the stock market. Instead of leaving money to generate a small amount of interest sitting in a savings account, it could be accumulating massively over the space of months or years. Financially savvy people know where to put their money for the best returns and it’s something you could do too. If you’re new to investing, property is possibly the safest bet, as it generally appreciates in value year on year. You could buy a home and rent it out, you get your tenant’s rent money landing in your account each month, and if you sell later down the line it’s almost guaranteed to be worth more than what you paid for it.

Are you a financially savvy person, or do you aspire to be? What things do you think those who are organised with money do differently?

As we all know, once you’re in the clutches of a bad credit score, Armageddon is impossible to avoid. It’s the end of the world. It’s game over with no more lives left on the screen. At least, that’s what we’re led to believe.

The truth, however, is a little bit different because all is not lost just because of a few bad decisions, a few bits of bad luck and an economy that is struggling. You can even start a business if you so wish; you can even open your own clothes store.

Sure, you’ll find things harder than they would otherwise be and you’ll find your financing options are a little limited, but there are still ways in which you can get that entrepreneurial ship sailing again.

[Photo courtesy of Unsplash]

So, without further ado, here are the things every wannabe entrepreneur with a slightly grey past needs to know:

1. Don’t Think Banks Are Your Only Option

A big part of the shadow that looms overhead is to do with traditional banks refusing to give anyone with a non-perfect credit score a loan. But don’t worry. Even healthy businesses with five years of good figures will struggle with banks nowadays. Instead, what you should do is look to alternative institutions. That could mean going super niche and looking for small business loans for minorities with bad credit, or it could mean approaching different nonprofits and microlenders, all of whom have a different way of assessing risk compared to traditional banks. In fact, what you’ll find from most of these institutions is they are geared a different way in that they have been set up to help those from low-income backgrounds, or to help female entrepreneurs or minority business people.

2. Know What Counts

Sure, your credit score is going to be a big factor, but it won’t be the only factor. There are lots of things that lenders like to use in order to weigh up the risk. Essentially, the way a lender will look at your application is using the 5 C’s of credit. Character is all to do with your credit score and history. Capacity is more about your ability to repay any loan. Capital is all about the investments you have made in your business because this will tell them what you have to lose. Collateral is your assets. And last, but by no means least, there are conditions, which is about what you need the loan for and how you will use it. Understand this marking system and you’ll have a better chance of succeeding.

3. Improve Your Hopes

The first step of securing funding from anywhere is having a rock solid business plan. That’s important. That’s the map that will help an investor or lender understand what you are trying to do and how you will do it. However, that alone won’t do, so also make sure you are actively working to fix your credit score and that you’re hellbent on getting your finances in order. Any steps you can make will impress a lender, and the more you can prove you are serious about it the better your chances.