Here are five money management tips that will help yu improve your finances.
1️⃣ Pay yourself first:
I call this the golden rule of personal finance. To pay yourself first simply means to pay a portion of your income to your future self. Whether it’s transferring money into your savings account, retirement plan, or any investment vehicle. It is ensuring that you are consistently contributing to your financial security before spending on anything else.
2️⃣ Track your spending:
Do you know how much you spent on groceries last month? In this season of rising prices, budgeting and tracking your spending are your financial best friends. The first step towards gaining control of your finances is working out where your pennies go. What gets measured gets managed; expense tracking is an important step in a long journey to financial freedom.
3️⃣ Build a savings pot:
Even if you’re not much of a saver, you should have enough money stashed away to cover your living expenses for at least three months. You may never have to draw on this money, but knowing you have some breathing space, should calamity strike, provides priceless peace of mind. Plus, if something does go wrong, you won’t have to immediately resort to maxing out credit cards or taking out emergency loans with punishing interest rates.
4️⃣ Lower your bills:
Inflation is a silent budget killer that causes prices of everything to go up. Proactively look for ways to cut down on your bills. There is probably a lower-cost plan for your mobile phone, call your provider and ask if you’re getting the best deal. Comb through your bills and look for things you don’t use (or use enough to justify the cost), like premium channel packages, magazine subscriptions, etc. If you’re not using it or getting your money’s worth, drop it.
5️⃣ Learn something new:
It’s amazing what you can learn in 30 minutes with a quick search online or a flip through the pages of a book. Find something about your finances that you don’t understand and figure it out. Maybe you want to know what an index fund is. Maybe you don’t understand how credit cards calculate interest. Learn it. The more you know, the better you become at managing your finances and making good decisions.
About Nike
Oyenike Adetoye (aka Nike) is an impactful speaker, author and personal finance expert. A Chartered Management Accountant by profession. Nike is the founder and CEO of LifTED Finance, a private financial firm that educates, coaches and supports people on their journey through financial fitness and wealth management.