For those who are lucky enough to have come across this truism, it’s no secret that generally the advice you’d be given by the major financial institutions as to how to manage your finances ultimately begs to benefit them more than it will ever benefit you. For example, a big commercial bank might post on their blog some information that is pro-saving, which to be fair could indeed benefit you in some way, but it definitely benefits them more than it would you.
The money you keep in the savings pocket they’ve allocated to you makes the bank a lot more money than the meagre interest they’d pay you, but that’s not so say you won’t get any benefits at all out of saving your money in this or any other way suggested by the bank.
I can go on and on about it making use of many other examples, but I’ll only explore one more example before getting into the meat of the matter, which is that of how to find and free up some extra cash if you need it. So another way in which some financial advice from the big financial institutions benefits them more than it would benefit you exists in the form of getting a broker for the services they offer, such as how you might have to pay a broker commission for trading stocks, bonds, CFDs, commodities, etc.
You’ll be encouraged to trade on their platforms just so that they can earn their commission from the many trades that the millions of traders use to effectively place bets against each other.
My view of the big financial institutions and the advice they give you is not all bad though. Underneath all the layers of complexity and the mystified manner in which they work things to their benefit, they’re onto something if you look at the bigger picture. For example, if a bank effectively says you can afford to repay a loan they agree to give you then that means that you can AFFORD to repay that loan. This means that in as much as you might appear to be having financial troubles which effectively compel you to want to take out a loan, somewhere, somehow you actually have the money you need.
So even if you feel really desperate and you feel as if your only option is to go ahead and apply for a loan, you should probably first look internally to see where you can find some extra cash you would have freed up in that way.
It gets even simpler and we tend to over-complicate things at times. While small business budget templates are indicatively for small businesses, they can also be used on a personal level to keep track of and manage your personal finances. By simply getting a full and detailed view of exactly where all the money you bring in goes by way of expenditure and other costs, you can uncover some unnecessary money-leaks to plug, which for many people are surprisingly big and account for the discovery of lots of extra money.