Life Saving Financial Tips
Personal Finance may not be a common subject in Secondary or Tertiary Institutions in this part of the world just as Economics, Mathematics or any other courses are. Its relevance and importance can not be overemphasised in our day to day life as we all make personal finance decisions every day of our lives right from our childhood choosing to save a part of gifts given to us by guests instead of blowing them on sweets and knock-out fireworks. I can vividly remember back when I was younger my parent visitors would always give I and my siblings some money before leaving out home and we will hold on to that money just to show off to our friends on the playing ground.
This leads up to the fact that we have all been engaged in personal finance even when we didn’t have the perfect knowledge of the “Nigerian State & Capital” or “Mathematics multiplication table”. We may have been regarded clueless but we were making important decisions as we knew them to be and our decisions have all been guided by our intuition or the amount of knowledge we have. Growing older we learnt to deal with bigger responsibilities and make difficult decisions which our intuition nor knowledge acquired couldn’t comprehend. We will take a look at some life saving financial tips that can make personal finance decisions easier and help achieve financial goals.
1. Acquire Self-Discipline:
Most of us might have acquired self-discipline while growing up due to their parents teachings or personal experience. This is the first step towards having savings in your financial life. It helps you separate your needs from wants and also learn the art of delaying gratification i.e. If you wish to buy anything, this helps you hold off to save rather than buying on credit. This skill helps you follow through your budget, adhere strictly to your spending plans and also live peacefully and prosperous without acquiring unnecessary debts.
Your future is the result of your present actions, take Control of Your Own Financial Future: One important lesson to be learnt.
2. Know Where Your Money Goes
Once you’ve gone through a few personal finance books, you’ll realise how important it is to make sure your expenses aren’t exceeding your income. The best way to do this is by making a monthly budget, cut all minimal unnecessary spending which later adds up to a huge amount saved up at the end of the month.
Keeping your monthly expenses very low will save you big bucks overtime, living with a flat mate now could help you save to afford a nice apartment in the long run.
3. Start an Emergency Fund
The most Personal finance mantras says “pay yourself first.” No matter how much you owe in student loans or credit card debt, and no matter how low your salary may seem, it’s wise to find some amount — any amount — of money in your budget to save in an emergency fund every month.
Having money in savings to use for emergencies can really keep you stress-less makes you sleep better at night. Saving up and treating your money as a non-negotiable expense will earn you not only just emergency fund but retirement money, vacation, Mortgage.
Don’t only suck away your money under your mattress; put it in a high-interest online savings account. Otherwise, money inflation might erode the value of your savings.
4. Start Saving for Retirement Now
Just as you headed off to start your kindergarten with your parents’ striving to prepare you for future success you need to prepare for your retirement well in advance. The sooner you start saving the less principal you’ll have to invest for your retirement plan.
Company-sponsored retirement plans are a particularly great choice because you get to put in pre-tax Naira and the contribution limits tend to be high (much more than you can contribute to an individual retirement plan). And you get to enjoy the fruits of your hard work.
5. Guard Your Health
If meeting monthly health insurance seems impossible, what will you do if you have to go to the emergency room, where a single visit for a minor injury like a broken bone can cost thousands of Naira? If you’re uninsured, don’t wait another day to apply for health insurance; it’s easier than you think to wind up in a car accident or trip down the stairs and break a neck.
You can save money by getting quotes from different insurance providers to find the lowest rates. Also, by taking daily steps now to keep yourself healthy, like eating fruits and vegetables, maintaining a healthy weight, exercising, no smoking, no consuming alcohol in excess, and even driving carefully, you’ll thank yourself down the road when you aren’t paying exorbitant medical bills.
6. Guard Your Wealth
If you want to make sure that all of your hard-earned money doesn’t vanish, you’ll need to take steps to protect it. If you rent, get renter’s insurance to protect the contents of your place from events like burglary or fire.
Find a fee-only financial planner to provide unbiased advice that’s in your best interest, You’ll also want to protect your money from taxes, which is easy to do with a retirement account, and inflation.
In conclusion, you don’t need a fancy degree or background to become an expert at managing your finances, if you use these financial rules you can be as personally prosperous as the guy with the hard-won MBA. To receive more financial newsletters sign up on https://fundall.io
