5 HABITS OF FINANCIALLY SAVVY PEOPLE
Having a good understanding of money, especially our money, can only be beneficial to us. We don’t need big books on Money Management before we can put our finances in order. Sometimes, all we need to put in check are our daily money routines and habits. Let us take a look at five habits financially savvy people exhibit on a regular basis and learn something.
1. They Save Money at all Cost: Saving money is priority to these people. They save for everything; emergency funds; vacation; retirement; education; EVERYTHING! Saving money comes first. No one really knows tomorrow, but financially savvy people can worry less because they have the means to keep their heads above water when the storm comes. Of course, the storms don’t always last forever. It is very important to save regularly at intervals, it could be daily, weekly or monthly. Another thing that helps is automating your savings, so you do not have to always be bothered about what and how to save at a particular time. Also, make sure to shop around for savings platforms that offer highly competitive interest rates, because at the end of the day, we are about growing our money. Saversclub offers you the best rates in the market today at up to 16% per annum.
2. They have more than one stream of income: This is something we are a big believer of. It is almost a taboo to have just one source of income. Statistic now shows that millionaires have seven streams of income. Well, that can be a lot, especially if you currently have one or none, an additional source is a good start. Who says it has to be stressful or extravagant? It can be as simple as monetizing the fun things you have been doing for free. For example, charging money for making your friends’ hair or watching your neighbor’s baby. Little drops make the mighty ocean.
3. They are not shopaholics: Financially savvy people are not compulsive buyers. They don’t instantly buy all the things that they like and when they do, they buy at the best price. This is because they are great bargainers and negotiators. Where someone who isn’t frugal buys a dress for NGN40,000.00, a financially savvy person can buy the same dress for NGN15,000.00 and probably from the same seller. It also cannot be emphasized that you only buy what you need.
4. They don’t take a loan without an actual plan: That you are financially savvy doesn’t negate taking a loan if you need to. However, these people do not do this for frivolous reasons. We have established the fact that there are good loans and bad loans and responsible people take loans for a good cause. Loans can be taken to finance an investment opportunity or to start or expand a viable business and many other good stuff. The list is endless. In developed countries, people are encouraged to use their credit cards responsibly because it not only affords them a great credit score but also opens up opportunities financially. Take a loan with an actual plan to use appropriately and pay back to avoid running into debt.
5. They do not live above their means: Okay! Now I’m screaming… See that dramaturgy; ‘Fake it ’til you make it’ does not apply here. Do not earn NGN120,000.00 monthly and fund a lifestyle of NGN125,000.00 per month. Yes, that serious! Don’t spend money you don’t have and do not create the impression that you have it. Create an opportunity to save and grow where you are at the moment. Live within your means.
We are certain that you have learnt something. Let’s get to building the right habits that can positively change our lives.
