One of the key concepts of the world is how hard it takes to make money, to live comfortably but how fast we spend the money earned through those arduous tasks we have to carry out. In this diverse and growing economy of the 21st century, being able to stay on top of your finances is a big deal. It might be quite overwhelming trying to manage how you spend your money, and it could be that there are just a lot of things to pay for or buy.
We all want to be more financially responsible. However, many of us fail in this simple yet difficult task. Saving money, no doubt could be quite tough, as there is always something to buy or a payment to make.
Effectively managing your finance is straightforward. Nonetheless, here are five (5) financial tips for the 21st-century adult. These tips would help you become more financially adept, and also more conscious of those unnecessary things that eat up your finances.
1. Avoid debts: A significant hindrance of financial independence and saving money is debt. The last thing on a debtor’s mind is how to save. Debt robs you off of your income because before you receive that next pay cheque. It means you have to service debt from the limited income you have and you also have to take care of needs from that same income. On that basis, it is advisable for anyone seeking to save more to avoid debts. And if you are in one, you should look to pay it up it, as that would help you balance your books better.
2. Keep rainy day funds: Another very important tip is to have a rainy-day fund or a savings plan. This is one tip that can seem very tasking, especially when you do not make big numbers as your income. Nevertheless, it is very important to save money no matter how small. Having a trusted saving plan can come in handy in the oddest of moments, it saves you from having to take a loan from a friend or a bank.
3. Have multiple income streams: Having multiple streams of income is a total must-have for anyone seeking to be financially adept in this 21st century. Recently, due to the outbreak of the novel virus, coronavirus, businesses were shut, and offices were closed. This means that people who are solely dependent on what they earn from either their store or shop or office were practically unable to earn as much as they would have. But people who had multiple income streams were able to easily bank on their side hustles or side work during the enforced lockdown as a means of getting an extra income especially for those whose offices were unable to pay salaries or business owners who were unable to open due to the lockdown.
4. Financial calendar: Helps you monitor important financial dealings you have over a particular period of time. Dealings could range from salary payment to fixing your car, school fees, savings/ emergency funds or as little as buying a birthday gift. Having a calendar helps remind you of this important thing in case you forget.
5. Save automatically: One of the easiest ways to save more money is to save automatically. Automatic saving helps you to put that extra cash out of your mind and out of your sight. You are left with only the amount available in your account, and that is what you are left to plan with. Automatic saving means a process where you have a place or an account that you save into at regular intervals, which could be daily, weekly, monthly, quarterly and even yearly. Many do not know that setting up a bank account to automatically transfer funds from your account into a savings account is feasible. All you have to do is meet your account officer, explain your plan to him, and he should help you in your plan to become more conscious of your savings. And if you consider that to be too cumbersome, there are multitudes of saving apps that you can automatically set up which would help you save your money. Automatic saving saves you the stress and hassle as the money is automatically moved immediately and you would have no access to it until a certain period of time which you might have decided on earlier.
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There is really no secret behind effective finance management. The truth is that anyone could succeed financially, when they are perceptive and focus on the future and if we do not allow our wants to dictate how we spend money. It all boils down to financial etiquettes, and if you lack that, we believe that you will find the above-mentioned tips helpful in keeping you disciplined.