The present state of the economy has made survival a very alarming task regardless of one’s social status due to increased inflation....CONTINUE READING
In fact, it has continued to have a negative multiplier effect on the prices of commodities as well as the value of Naira.
The situation is so tense that without proper financial planning, prudence, determination and focus, making headway financially would be very thorny.
It is quite true that depending on a particular source of income in this present economy may not be feasible irrespective of your earnings owing to persistent rise in the cost of commodities and weakening of Naira.
There is no doubt that it has steadily had an adverse effect on the standard of living of the masses such that their monthly earnings can no longer sustain majority of them and has continued to inflict untold hardship particularly to those whose means of livelihood cannot be guaranteed.
That is why it is very important to think of how you can expand your financial horizon if you really do not desire a life of penury.
Besides, this can only be possible when you make up your mind to defeat inflation because it is a killer of our ‘finances and investments.’
In spite of the unpleasant state of the economy, there is still need to plan for your financial future to avoid regrets during retirement because it will surely come.
The essence of working so hard is to have a better and impressive financial future for yourself and family.
To accomplish this is not a child’s play but it is your mindset or view about money and financial independence that matters.
If you believe in your potential despite financial failures or risk you may encounter while trying to enhance your financial life, there is no way you will not survive in a distressed economy like ours and reach your set goals if any.
The under listed tips can help you to improve your financial life:
Set Your Priorities Right
There are essential things you need for survival such as food, accommodation and clothing, others like smart phone; car and designer wristwatches are wants.
There must be a clear distinction between what you need and want if you really want to have financial independence.
To start your evaluation, write a list of everything you spend money on and split the list into needs and wants. Once you compute the totals, work out the percentage of each.
The popular ‘50/30/20 rule’ is an easy budgeting method that can help you to control your money effectively. With this, it is easier for you to stay on track to attain your financial goals.
Track Your Money
There is need to always evaluate your expenses or spending habit to track your money. That is why before making a decision on how much you can save, you need to know how much is your operating cost or expenses.
Ensure you cultivate the habit of reviewing your expenses regularly as this will help you to work on your spending pattern.
An objective assessment of how much you spend is the best way to start evaluating where you are financially. Besides, it will aid you to reach your financial set goals.
Set Achievable Goals
It is important to set financial goals especially after learning how to manage and track your expenses.
Consider setting goals connected to your personal status but if you do not have anything definite in mind, inspiring yourself to keep saving and investing every month may be difficult.
It will do you real good to take time to set realistic financial set goals by writing them down in a documented financial plan.
With this, it will help you to assess your progress over time and keep you on track especially when you are working toward a long-term goal such as purchasing a property or a building project.
The only ‘right’ time to commence savings is now because it is the key to building your personal wealth.
Analyse Your Expenses
Keeping track of your money especially what comes in is good but monitoring your expenses is better as it will give you a clear picture of your spending habit and helps you to make the necessary adjustments.
Through it, you will be able to prioritize and cut down on unnecessary expenses.
Increase Your Earnings
With a low income or pay, it is quite hard to make savings that could be considered considerable. That is why you need to earn more money and as such must be ready to increase your revenue streams.
Automate Your Savings
Try as much as possible to evaluate your monthly budget to see how much money you can practically save and start transferring that amount into a separate bank account.
To maintain consistency, you can automate your savings by giving a standing order to your bank account officer to transfer certain amount of your monthly earnings into a dedicated account.
Paying yourself first will enhance your financial life such that you are able to tackle any financial emergencies that may occur. Also, with the help of a financial advisor, you can use the money for a long-term investment.
Broaden Your Financial Horizon
If you really want to enjoy financial freedom, you need to diversify your investments and make sure you are into the right investments. And to avoid making the wrong investments, you can consult an expert in the field to advice you on the best long or short term investments to make.
There is nothing wrong in starting with small and short term investments and then use the proceeds for bigger ones.
Invest In Yourself
Do you know that your skills, knowledge, and experience are the biggest assets you have and the value of your future income is on that premise? Do you also know that your job and future career are the most vital factors in attaining financial security and freedom? See yourself as a financial asset and try as much as possible to invest in yourself as it will pay off in the future.
You can Increase your value through hard work, persistent upgrading of skills and knowledge, and by making clever career choices.
Efforts to improve your career can have a far better effect on your financial security than tightening your belt and trying to save more.
Plan Your Financial Future Properly
Research has shown that those who plan for the future end up with more wealth than those who do not. Thriving people are goal-oriented; they set goals and build up a plan to achieve them.
For example, if you set a goal to pay off your car loan in two years, you will have a better chance of achieving this goal than if you had merely said you wanted to pay off the said loan, but failed to set a timetable.
Being goal-oriented and following a plan means taking control of your life. This is an important step toward improving your financial independence and security.
