How To Handle Huge Financial Commitments Without Feeling Overwhelmed
Written by Blessing Onyegbula
I can remember my first big girl purchase. It was an Infinix phone I bought for almost eighty thousand naira. I used part of my earnings as a freelance writer to get it and I definitely remember how I felt then like I was finally mature. The phone was a sign of independence as it made a statement about my skills and financial capability or so I thought.
Because a few weeks after the purchase, I was back to square one as I had no money. It’s not like I didn’t have extra money left, but taking a chunk out of my earnings for one expense did many things to me, mentally and financially. Which made me almost regret making a move. But I’ve learned my lessons now.
Like knowing how to better handle major expenses that will come my way and fortifying my mental health and bank account to survive such strong hits.
I’ve gone ahead to spill it all in this piece. So, even if you have been in a similar position to mine, this post will help you not repeat such mistakes and help others make better financial decisions when it comes to heavy spending.
Whatever your case may be, whether it’s paying for rent, getting braces, paying for a course in dollars, a home renovation project or a family expense.
Here are my handy tips, based on my personal experience dealing with heavy financial commitments.
1. Save For It
The first tip is to save for it, and while this is obvious, many still skip it.
Here’s why.
For many, their big buy is something their salary can conveniently cover. For example, let’s imagine there’s a lady called Rachel. She earns 300k monthly, takes out from her salary to cover her rent of 160k. Now, while she still has 140k left for her monthly expenses, adopting this method will put a dent in her budget as she has shortened her salary by more than half, so the wise thing for her to do will be to save towards her house rent over the months.
Dedicating 20k out of a salary of 300k monthly will take her just eight months to cover her house rent, which means zero worries when the rent is due. And with four months in the year to enjoy her salary in full. But, of course, that is if she doesn’t have more major expenses like that.
Saving also allows you to plan well. It’s not advisable to take up a project on a whim. Unless you have the time and enough resources to handle it. Try to give yourself at least three months to decide and save on it.
2. Use Coupons And Discount Offers
If your huge expense involves an online transaction, it will be wise to check for coupons and discount codes. This way, you get to spend less. Position yourself in ways that will offer you discounts for a product or service, like joining relevant groups, following niched influencers, joining the email list of the service provider or product seller.
Also, website extensions like Honey and Karma will be helpful to you when trying to get coupons and discounts. They work by searching the net for coupon codes and automatically apply them to your purchase during checkout.
3. Weigh Your Options Properly
For instance, if you need to pay for a pricy course or certification exam, do enough research to be sure that’s the best option.
We tend to equate price to quality, but that’s not necessarily the case. It’s usually the product with the best marketing that wins. Don’t fall for marketing gimmicks that try to confuse you with features you can get in every other product in that industry.
Be sure your choice will work for you and give you your desired goal, not because every other person is doing it.
4. Have A Dedicated Account For It
Having a separate account strictly for heavy spending will also help.
Here’s how.
First, you get to channel funds into that account strictly for a particular project. This means when the big debit alert hits, it’s not going to throw you off balance, offset your plans or leave you with sweaty palms at the damage done to your account.
Suppose you don’t want to go through the stress of opening a new account; virtual banks now exist. With savings and investment platforms like Cowrywise, Piggyvest, and Kuda available at our disposal. You can use them in stashing up for those semi-rainy days.
5. Tap Into Your Extra Sources Of Income
To buffer up and quickly meet your target, consider other sources of income apart from your salary. This can be a bonus from work. Monetary gifts from friends and family. Returns from your investments(if you’ve got any).
Having an emergency fund will also help. While all big expenses don’t count as an emergency, losing your accommodation because of your inability to pay your rent counts as one.
Plus, if you’re one of those that set automatic payment from their bank account into their emergency funds, it must have accumulated over time. Of course, that’s if you’ve not had an urgent need to take out money.
So why not channel some of it to help and save yourself the overwhelming stress you’ll end up with if you start figuring out last minute or solving it with just your active income.
Finally,
There’s never an easy way out when it comes to spending money. Just like you, I’d rather have my money fattening up and sitting pretty in my bank account. Or, if possible, get things for free. But, sadly, that’s not how life works.
Thankfully, these tips will help you withstand those heavy debit alerts when they hit, just by implementing at least two of them shared here.
Safe spending, girls!
Blessing Onyegbula is a freelance B2B Saas content writer. On a professional level, she writes on self-development, finance, tech and marketing. Connect with Blessing on LinkedIn and Twitter.
Edited by Zulu Nneka Anyaogu
Zulu is a Lawyer, Programs manager, and Youth Human Rights Advocate who is passionate about women’s rights and the inclusion of young people in decision-making spaces. In her spare time, you’d catch her binging on movies, reading crime and mystery novels, and eating. Connect with Zulu on Instagram, Twitter, and LinkedIn.
Published by Akinsipe Temitope
Temitope is a young storyteller who thinks all stories are worth telling. She loves to inspire people to do what they love and follow their passions, tell their stories, and live in the present moment. Connect with Temitope on Instagram, and Twitter.
