2019 was a challenging year for most families, with financial issues being the major cause of the strain. A new year comes with a sense of renewal, with goals and financial decisions to make changes required in addressing financial issues in the coming year and beyond. Taking a bold step by making solid financial resolutions that can help you get closer to your financial goal is essential for starting a new year.
Have a financial goal
Having a financial goal gives you clarity and focus on what you want to achieve and how you intend to achieve them. It also gives you direction on how to spend your money. Whether long term or short term, financial goals help in budgeting and making good financial decisions.
Avoid misplaced priorities
Everyone has priorities but most people have misplaced priorities. Misplaced priorities take you down the path to debt and unfulfilled financial goals. They also divert money to the wrong things, thereby leaving you in huge debt. In drawing a scale of preference, it is expedient to ask yourself, “What is the important thing?” “Which of these is more pressing?” and “What can I do without?” As urgent as priorities might seem, some are more demanding than others, while some “priorities” are things you can do without.
Pay down your debt
Being in debt is a situation that people find themselves in occasionally. Most times, it is not a conscious decision. Some unforeseen contingencies could drive you into taking a loan from someone or a financial institution in order to settle that need. Such unforeseen contingencies could be tuition fee, medical bills, business transactions, house rent, or any other thing that arises as a form of urgency that has to be met.
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The best way to pay up your debt is to make a list of who you owe and how much, then look for ways to pay up, wholly or partly. Don’t wait for the money to be complete. If you owe a debt of N1000,000, you can start by paying N20,000 if you don’t have the complete money.
By so doing, you are reducing the pressure on yourself and on your creditor. If you are finding it very difficult to pay up your debt because of some underlying circumstances, then, do well to reach out to your creditors and explain to them why you are finding it difficult to repay, stating that you will pay up partly or fully when things get better. This will help to create an understanding between you and your creditors, thereby helping to reduce the pressure on everyone involved.
Develop a good savings culture
The richest man is not the man who earns more, but the man who saves more; hence, saving deprives you of something good today in order to give you something better tomorrow. Cultivate the habit of saving by spending less. Have a goal and save towards actualizing that goal. Savings can always come through for you in an emergency situation.
Fortunately, we have some good apps that are developed solely for the purpose of savings. Such apps include Piggybank, Cowrywise, and a lot more. You can save directly from your bank. You can also save by having a standing order on your various accounts. You can also encourage your children to save by giving them piggybanks to save in, and reward them for their savings.
Invest in yourself
Self-development is one of the best decisions you can ever make for yourself. Read books and articles, and attend conferences on business and finance. Network with people who are more knowledgeable than you are in finance and learn from them. The extent of the financial decisions you take for yourself is a product of how much knowledge you have about finance. By investing in yourself, you’ll be guided when making financial decisions.
Article written by: Hukeuma Aguma