Babajide Okeowo
“Life happens”, this is the slogan of an insurance company. In as much as we want to be like the ostrich and hide our heads in the sand, life incidents are inevitable! Be it the loss of a well-paying job, medical expenses, taking milestone steps in life, when life does happen, how prepared are you? Do you wallow in regrets or you just pick yourself up and move on? Your response towards when life happens will determine how prepared you were. Here are some tips to get you prepared for the eventualities of life.
Have an emergency fund
You can’t know where to trim your spending and how much you can save towards your emergency fund if you don’t know where your money is going in the first place. If you have a budget, you will know where, what and what to cut, trim or avoid totally to free up some funds towards your emergency fund. Having a plan in place will provide you with a great starting point and make it easier to figure out how your emergency fund fits into your overall goals.
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Cut the big costs
You go on vacation twice a year, will it kill you to cut it down to once? No, I guess! You have always loved a Toyota Prado jeep, but, my friend, will it kill you to drive a Sienna? It is time for your kids to get into high school, while it is lovely to have them attend the most expensive school in town, will it cause you any harm to send them to a less expensive but a good school as well?
Most of our financial decisions are based on sentiments, emotions and more of a social status thing. While it is great to want to ‘belong’, are you well equipped for that or you are suffering and smiling?
It will do you a whole lot of good to cut costs on some big things without compromising on quality though. That way, the extra fund you have saved can go into building up your emergency fund.
Make more money
As the saying goes, the best way to save more is to make more, and fortunately, there are many ways to make extra cash on the side. Whenever possible or necessary, pick up extra money on the side. The importance of a plan B cannot be over-emphasised. And, as someone rightly put it a few weeks ago, having a Plan B can save you a whole lot of financial regrets if your Plan A fails. Today, freelancing opportunities abound; {will be sharing freelancing opportunities where you can earn income in dollars next week} so, stay tuned.
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Remember priorities
Impulsive shopping is the bane of many. Spending without a budget is the reason why many are in financial mess. The importance of a budget can also not be over-emphasised, that way you will know what and what is really important to you. Having an eye on the prize will help you stay in line and true to your objectives. Instead of a fancy party, a garden or parlor party can suffice, instead of premium cable subscription, you can make do with affordable streaming subscriptions. Changing your spending habits in these ways will save you from incurring huge amount. While we do not pay too much attention to these few thousands, you will be shocked at how much you can save in a few years.
