What should be the right habits regarding saving and spending money? Charlie Nunn, CEO of Lloyds Banking Group, the UK’s largest bank, is solving your money related problems with five simple tips… One out of every four current accounts in the UK is in Lloyds Banking Group. Because of this, Nunn has a deep understanding of customers’ spending, saving and borrowing habits. Nunn recommends making savings automatic, talking openly about money in relationships, giving children pocket money, pausing to think before shopping and being wary of influencers who give investment advice on social media. These five tips can help the common man in solving everyday money related problems. Do this – Keep a fixed amount from the salary account in a separate account in a place where your hands cannot easily reach it, this method will increase your savings year after year. 1. Talk about money with your spouse and children. My wife and I run a joint account. Maintain complete transparency with each other in money matters. I believe that the biggest red flag in a relationship is the other person being careless with money. I have always been cautious about money. This thinking is from childhood. After the divorce of her parents, the mother raised four children alone. Because of this, decisions regarding expenditure at home were taken thoughtfully, whether it was about arranging ration or planning holidays. 2. Keep giving pocket money to children. Our children do not listen to my advice much ‘because of being a father’. Still, I have tried to explain the importance of money to the children. By giving pocket money, children learn to budget and live within their limits. I do not believe that the younger generation is irresponsible with money. In fact, today’s generation has to face a lot of right, wrong information and pressure in the online world. The way to avoid this is that if there is any doubt about any transaction, then definitely ask questions. 3. Make saving automatic, so that it cannot be postponed. A simple way to save is to make it automatic, so that saving every month does not become a decision or a task to be postponed. Keep a fixed amount from salary in a separate account in a place where it is not easily accessible. This is the easiest way to develop the habit of saving. 4. Stop and think before every purchase My biggest concern is fraud. Many people are becoming targets through social media and online marketplaces. Despite being adept at technology, youth are more sensitive to scams than elders. Stop and think before every purchase. Before sending money anywhere, ask yourself whether the other person can be trusted. If in doubt, use the tools available to get the information or call the bank directly to confirm. 5. Always be wary of fininfluencers Social media can be helpful in increasing money understanding, but I have deep concerns about fininfluencers who promote risky products. Influencers are paid to promote a particular crypto coin, meme coin or investment product, not to help people choose the right investment option. Those who do not have much money should not take such risks in which money can be lost. They should adopt simpler options. You can try these methods – You can set a standing order (a facility to automatically transfer money on a date decided by the bank). – Money can be divided into separate envelopes, or round-up tools can be used. – Save a little, save early, save regularly. I don’t like to budget myself; As soon as the salary comes, I look at the account and decide how much amount to put into savings, and I complete this task as soon as possible. – Create an emergency fund – If possible, always keep aside a fund equal to one to three months’ salary for unexpected expenses, such as car or house repairs. (Credits – BBC World)
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Influencers promote investment products for commission: Whether your income increases or not; These 5 habits can definitely increase savings
