Note the following content is intended to be educational but it does contain promotional material for Kaldi.

31% of Gen-Z Worry About Money –This One Habit Changes Everything

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Discover the Power of Budgeting and Expense Tracking in 2024

You've seen the headlines—Times are hard for Gen-Z. They’ve lived through record high inflation, and the cost-of-living crisis as they’ve entered into a working age. Statista reports that 31% of those born between 1995 and 2012 are concerned about their financial future.

Budgeting and expense tracking might not sound thrilling, but they’re powerful tools for managing your finances. They help you to prevent overspending, identify areas of improvement, and keep you focused on your financial goals.

Creating a realistic budget

Formulating a practical budget involves setting specific financial goals, tracking your income and expenses, and maintaining flexibility to accommodate life changes.

Planning for unforeseen expenses by having an emergency fund is crucial to handle emergencies without financial stress. What’s more, maintaining budgeting discipline and embracing frugality can help you stay on track with your financial targets. Whether saving for your first home or investing for your future, a budget is a great first step.

Utilising expense tracking tools

Expense tracking tools can help you visualise your spending patterns, making it easier to make informed decisions and adjust your budget as needed.

Kaldi offers easy-to-use budgeting tools that lets you know exactly what your money is doing each month. In a few taps you can allocate funds to different pots and monitor your expenses from an intuitive, omnichannel app. That means waving goodbye to those fusty old banking apps!

Building Wealth on Any Income Level

Investing in low-cost index funds and ETFs

There's an old saying: "Time in the market beats timing the market". Essentially, if you invest double the amount of someone who started a decade before, you'll actually see lower returns in the long run (assuming you’ve invested in the same product)*.

That's why Kaldi encourages a slower, more strategic approach to building wealth. So, steer clear of those 'get-rich-quick' schemes with crypto, CFDs and day trading.

Committing to low-cost index funds, mutual funds, and ETFs in the stock market has proven to be an effective wealth-building strategy. These funds offer diversification and typically have lower fees than actively managed funds, making them suitable for beginners and limited-capital investors.

Also, investing early, even with small amounts, in tax-advantaged accounts like ISAs can accumulate wealth over time due to compounding interest.

*Source:https://wealth.visualcapitalist.com/visualizing-power-compound-interest/

Managing Debt Responsibly

Debt is often seen as a burden, but it doesn’t always have to be. Understanding the different types of debt and managing them responsibly can help you maintain financial stability and achieve your financial goals.

Understanding different types of debt

Of course, good debt, such as mortgages and student loans, can help individuals progress in life and attain their personal goals.

When acquiring any kind of debt, it’s crucial to compare various options for the best interest rates and to borrow only an amount that can be confidently paid back on schedule.

Strategies for paying off debt

While paying off debt may seem intimidating, it becomes feasible with the correct strategies. Paying more than the minimum on debts can significantly reduce the total interest paid over time.

You can pay off debts efficiently by using methods like the debt snowball or debt avalanche. These methods can help you prioritise and tackle your debts effectively. The goal is to reduce your debt load and achieve financial freedom. So, take control of your debt and pave your way to financial independence.

Invest your Savings with Kaldi

Kaldi makes saving a simple, seamless process with 2.7% average cashback from top UK retailers, round ups, and other budgeting tools that automate 'little and often' saving habits.

Join the Kaldi waitlist today and take the important first step on your journey to building personal wealth.

Investing carries risk - the value of your investments can go down as well as up, and you may get back less than you put in. This article is for informational purposes only and does not constitute financial advice. Always do your own research and consider seeking independent financial advice before making any financial decisions.