Saturday, 26 May 2018

Personal finance tips

Do you want to save money? We all do. Saving money is not the problem. The lack of resources turns out to be the biggest issue most people face. What are we doing wrong? Well, we need to go back to the basics to figure a few things outs. Here are 5 tips that will not only help you save money but will change the way you look and treat money from this moment forward.



1. You need to keep track of your net worth. Your net worth is the what is left after you calculate your assets and debt.

An Example
Chidi currently has in the bank N250,000. His debts total N10,000. Once he pays his debt, in full, he will have N240,000 left over, which will be his net worth.

You need to keep an eye on this figure because it gives you an inside look at where you stand financially. Your amount may differ slightly from Chidi, but you still need to keep an eye on it.

Is your net worth greater or less than your current debt? Those who are in the “greater” column are doing pretty good. Those who are in the “not so great” column, you are not doing so good.

2. You should start setting financial goals. How much do you want to pay off? When? You can say you want to make plans all you want, but, until you do it, you are living in a fantasy. Make a plan and create a chart.

Do you have a personal account? They have it set up to where you can create your goals with them. You can keep track of where your money is going, and whether or not you are on track.

How much do you want to have saved? Do you have a specific date in mind? Set the date. Anyone can do it, it does not matter how much money you make.

3. Do you love yourself? This may sound crazy, but it is true. You do need to value yourself. Those who value you themselves more, they will pay off their debts much faster. We have complete control over our lives. One thing I learned in recovery is you are responsible for the choices you make.

One woman started loving herself more once she paid her N20000 debt. You can do it too. Paying off your debt is another way to be independent because you are dependent on the people you owe money to. Paying the debt off is a way to regain your independence.

4. Start small. Start saving a little bit of money each week from your monthly salary,  weekly sales or gift money . That is what I started to do. You may want to make a purchase this weekend. Do you have a bill that needs to be paid? Pay the bill, buy the item, and keep the rest in your account. You do not need a lot. N2000-N5000. The money will begin to add up over time.

5. Learn to be happy with what you have. This is another thing I learned during my recovery. We become obsessed with the idea of “acquiring stuff.” We need to learn how to appreciate what we have now. Take a look around you. You will see that you have a lot to be thankful for.

Everything in life happens for a reason. Sometimes you need to lose something to earn the gratitude. It happened to me.

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