With the recent economic fluctuation and financial instability in the world, especially in Nigeria, it is essential that everybody develops the right financial behaviours in 2021.
Nobody is sure about what the market will say tomorrow, but you can determine what your pocket says. You cannot control the country’s economy, but you can manage your finances by imbibing the right behaviours.
Here are a few financial behaviours you should develop in 2021;
- Have multiple sources of income: Depending on one source of income might not be the best idea, especially when nobody knows what the market will say tomorrow. There could be an increase in prices, making you spend more, but your income will not increase if you only have one source of income.
- Spend lesser than you earn: It is easy to spend money but make sure you are not spending more than you earn. The best way to achieve this is by setting apart a percentage of your income for your expenses and making sure you don’t exceed it when buying things. This would help you to curb your spending and become financially stable.
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- Have a reasonable budget and stick with it: The importance of budgeting cannot be overemphasized. Budgeting helps you to plan your expenses and, most importantly, to prioritize your spending.
- Stay debt-free: This might not be an easy thing to do, but to become financially stable, one has to stay debt-free. This is the only way you can be financially free and stable in 2021.
- Save up for emergencies: Emergencies are unforeseen circumstances that can happen to anybody at any time, and they usually come with a lot of expenses. To be able to survive emergencies, you must have saved up enough funds. The most crucial financial behaviour you should develop in 2021 is saving up for emergencies.
- Invent: You have the best financial behaviour when you not only save your money but also invest it. The value of your cash depreciates with time when you don’t invest it.
You can invest your money in many businesses while you watch your money grow, knowing that you are financially secure.
There is nothing as beautiful as knowing that you are free from debts and have enough saved up for emergencies. Financial freedom gives peace, and you can only experience it when you develop the right financial behaviours. It’s just a few months into 2021, and it is not too late to develop the financial behaviours discussed.