loans with no upfront fees and no guarantor
  • January 5, 2023
  • Adrina Martinez

As per Financial Times, “Nearly 60% of youngsters believe lack of money management skills as the primary cause behind overarching debt”. With individuals needing cash for day-to-day expenses amid the rising energy bills and cost of living, the household budget suffers.

To this, 44% of adults believe they could be in a better position with finances if they had been taught basic money management skills. It would help combat issues like long-term unemployment, managing rent and university expenses, and investing in a big capital item without worries.

Internationally, the country needs to improve on ensuring better financial literacy among individuals. It is leading to a confidence drop regarding savings and money management. Financial education must be seen as a core element that must embed the education system. It would help individuals plan their debts and save for retirement without panicking or falling on finances. The blog states how financial literacy can help manage cash in any situation.

What Is Financial Literacy?

Financial Literacy is the ability to understand and effectively use various financial skills like- personal financial management, budgeting, dealing with debts, tracking spending, and profitable investing. Precisely, it is knowledge of improving your relationship with money and ensuring stable finances in any phase of life. It is the reason one must start mastering the basics of Financial Literacy from an early age. The earlier you begin, the better hold you can ensure over your wealth and finances.

Ways Financial Literacy can help Counter every situation easily

To live a financially sound existence, one must learn to comprehend economic ideas that would help one make the right financial decisions. It also provides an in-depth analysis of the factors critical to consistent financial growth. Here is why one should stick to learning and mastering the basics of financial literacy.

1) Prepares one for emergencies

Financial literacy helps one analyse the path to ensure a successful savings pot. It helps one balance the expenses well and save for the unexpected. There are multiple ways to do so. One of the best is by setting up an emergency fund. 

 As the name suggests, it is specifically for any life emergencies- like sudden disability, loss of a person, job loss, business loss, or any economic downturn like recession or pandemic-like situation. It helps combat financial crunch and confirms sustainable living.

However, individuals engaged in worldly affairs often skip savings. Adults rely more on payday or income. Living from paycheck to paycheck is good until you encounter an emergency. Savings is crucial to combat rainy days. Not having any financial backup in situations like-

1. Ceiling leakage
2. Plumbing and backsplash issues
3. Rent payments

4. Diluted energy resources
5. Pending credit card bills
6. Medical bill

Delaying these until another hour in cash absence can make it adverse. Here, it would help if you had a quick solution without waiting endlessly for help. If you left your job currently, you must be seeking the most affordable way to tackle the situation. 

Here, loans with no upfront fees and no guarantor can prove the most economical way to finance in extreme cash constraints. With no fees or a guarantee on loan, you can attend to any emergency with a swift money transfer to your account. Although the sum you can borrow is small, it is sufficient to bridge any urgent expense.

2) It Helps frame and achieves investment goals

Investment is the base to rationalise the lifestyle one wish to adopt as the years mature. Everyone, whether you are a parent or just a student, share some short and long-term financial goals like-

1. Ensuring high education in a reputed university
2. Purchasing a car
3. Investing in a property for future growth
4. Having a home of your own

Goals like these require thorough financial planning. Financial Literacy helps one acknowledge the income you must have, the years you should invest, and the amount you should invest to accomplish your goal without postponing it any further. 

Individuals with generational wealth find themselves dumbstruck by the possibility of productively using the money. Without deep knowledge, they soon find themselves losing on the same. Financial Literacy helps ensures a sound take over the usage and investments. This investment could turn profitable in the future. 

3) It helps one adopt healthy financial habits

Financial literacy helps one improvise on the decisions one makes regarding money matters. Making healthy choices in any life aspect can prove a turning point sooner or later. Knowing in detail about financial product usage and introducing those in your schedule can help you avoid debts or going bankrupt. Here are some healthy financial habits that financial literacy can help you with: 

1. Keeping credit card debt, the lowest with a low credit utilisation ratio
2. Avoiding Buy-now-pay-later schemes as they could turn into the costliest
3. Saving at least £200-£800/ month as a student
4. Avoid any impulse purchase that may ruin your budget
5. Using a budget scheduling calendar for better money management and cost-cutting

And more. Financial intelligence helps one transform every phase of life with the right investments and spending habits. Optimising your life with these financial habits will help you ensure a smart credit score and money usage

4) Helps with smart financial planning in unemployment

Armed with financial knowledge, individuals can easily counter and sustain unpredictable phases like unemployment. Most individuals panic in this phase owing to little knowledge to confirm the best lifestyle within the available means.

For example, a novice, knowing little about finances, would panic about unemployment if encountering a sudden cash shortage to bridge the medical urgency or fear the bill spiralling. He may make continuous calls to known ones for help, only to return dejected. Even if someone responds, the help may get delayed.

What can he do to tackle the issue without hassle and panic?

On the other note, having sound financial knowledge regarding the external facilities available will help switch to quick cash mode with loans for the unemployed on bad credit from direct lenders. Sharing complete knowledge about the present circumstances and credit situation, these loans would help him secure quick cash help with just a single application.

It is just one scenario of how financial Literacy can make things easier for individuals stuck in extreme situations. Crack these 5 primary principles of Financial Literacy, and you can re-track your finances on the right note.

1. Earn right
2. Spend wisely
3. Borrow smart
4. Protect money
5. Invest cleverly

Bottom line

Financial literacy is about efficiently using money and reducing liabilities as you mature in finances. The blog will help you analyse how financial literacy can change your money habits and help you better counter emergencies.

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