Babajide Okeowo
Taking steps to achieve financial health is just like setting a goal to lose weight – it doesn’t happen overnight. Setting yourself up for financial success requires time, dedication and maintenance. Still, many people want to see results quickly or they lose the drive to make critical financial changes. As it is a brand new year, it is better to start early, keep at it and see your finances improve in no time.
Enroll in a financial literacy class
Most people are financially illiterate and don’t know it. If you can’t do a simple budget, then you are likely financially illiterate. If you are unaware of your money-related decisions, are unaware of their consequences, or simply don’t care, you’re financially illiterate. If you think money matters are better dealt with by employing experts like investment advisers and accountants, but you don’t have the ability to assess their performance, you are financially illiterate.
This is why the Central Bank of Nigeria and the Deposit Money Banks, DMB’s under the auspices of the Bankers’ Committee spends a lot of money trying to educate the young and the old on banking matters. This underscores the importance of financial literacy. Financial literacy is very important and this is the very first step to take in order to get your finances right in the New Year. You may visit www.wisebread.com to obtain financial knowledge. You may also check for online classes.
READ ALSO: Fitch places Diamond, Access on rating watch
Automate your savings
When live from salary to salary, it can seem impossible to put money away. But if you prioritise savings before other expenses, you’ll be forced to live within your means. The act of saving money every month requires motivation and that can fade over time. So, it is better to implement automating savings. Setting up automatic transfers from your salary account to another fixed account makes saving a bit easier. As soon as your salary hits your Bank account, a pre-determined amount of the money is moved to the account you have set aside for saving.
Have alternate source of income
Relying on your salary from Month to Month is a difficult task especially in a very dynamic economy like Nigeria. You must have an alternative income that should augment your current source of income. Think about it? Even the richest man in Africa doesn’t have one business.
Live within your means
Living according to your means is probably the most difficult part of attaining and remaining financial independent. Living frugal is relative in my opinion because what might seem a splurge to some may just be very important to others. The easiest way to approach it is to see living frugal as not spending more than what you earn. It is as simple as that. If you earn N100, 000 then don’t spend beyond N100, 000.
Cut recurring expenses you don’t need or use.
You can make extra room in your budget instantly by reducing and eliminating recurring monthly expenses that you don’t really use or value. Start by reviewing your cable bill, data plan, streaming services, gym membership and monthly subscriptions. When it comes to your TV package or mobile data plan, you may be able to opt for a lower-cost plan without affecting your usage level, so make sure to review and compare price options. With others, you may have to cancel your membership or subscription completely. Even if you’re only saving small amounts, cutting discretionary living expenses can help you stay on budget.