7 Things People like You Are Doing to Boost Their Personal Finance
Tamara is turning 25, she just finished her National Youth Service and landed herself a job with an enviable salary enough to live a flamboyant lifestyle. Her parents are well-to-do and she does not have siblings living off her income hence she is her only responsibility. Tamara can save a huge part of her income monthly, but unfortunately, she feels too young to bother about financial planning.
On the other hand, Doris 24, earns twice less than Tamara yet she plans her finances, lives on a budget and makes savings a priority. Between Tamara and Doris, who is likely to withstand a financial shock in the future?
Think you’re too young to learn financial management?
Tell you what! You are never too young to learn about money and budgets.
Earning more money does not automatically translate to spending more nor age determine your spending capability. You need to learn early, how to manage your personal finances, here are 7 ways young people like you are enhancing their finance (and you should too).
- Budgeting – Draw monthly budgets to accommodate your basic needs. Spend only on things accounted for in your budget except they are emergencies. Keep more than one bank account depending on your spending needs; – For example, you can create an account for living expenses to cater for your bills and utilities, an account for savings and an emergency account to take care of unforeseen crises or emergencies. Allocate a percentage of your earnings to each account monthly.
- Investments – Dormant money does not grow instead the value reduces over time. Find ways you can invest your savings to grow your money. Seek professional advice on this.
- Expense check- Cut down on extravagance, spend less than you earn and don’t buy on impulse. Yea you want to turn up and go on weekly grooves with your buddies after all work and no play they say makes you a dull boy! However, you must reduce the frequency and draw spending boundaries. Do not keep debit cards for all your accounts, one debit card for your living expenses account is enough. This will discipline your spending habits since the money is out of reach.
- Negotiation – Don’t always go with the first price you’re given. Chances are if you ask nicely for a discount, you will get it. That’s a few bucks saved.
- Debt management – Avoid going into debt as much as you can. If you cannot afford it, skip it. Don’t go borrowing to buy liabilities or buy on credit.
- Financial education – Read up and learn more about financial management. Include it in your study plan.
- Side gigs – Never depend solely on one source of income. Look for other earning potentials besides your regular pay cheque. Get a side hustle but be sure it doesn’t affect your day job. See How to Juggle Between a 9-5 Job and Side Business
Reading this and feeling good is not enough. Get a pen and paper, sketch a mini plan for your finances if you do not have one already. Work on improving it with daily conscious practice.