Everyone needs money to take care of their needs and wants, but not everyone is quite prepared to handle money properly and become its master and not its slave.
Money is power, and the lack or presence of money has a powerful effect on an individual; it exposes their financial habits. If an individual does an honest self-assessment of their financial disposition when in want and vice versa, with discipline and proper planning, they can learn to be smart with their money.
You can learn how to manage your money better when you understand where your money comes from and where it goes. There are a few questions you should be able to answer with all sincerity of purpose.
Do you keep track of your finances?
Do you have one or several sources of income?
Are you living within or above your means?
Providing correct answers to these questions would mean the individual is determined to understand their financial habits and wants to learn how to get smart with their money.
Here are some ways to get smart with your money
- SAVINGS – it is principal to have a savings culture because by so doing, you can provide for the rainy days, unforeseen circumstances, and future living expenses, etc. Having a savings culture requires financial discipline. The size of your income and your weekly or monthly expenditure is a clear determinant of how much you will decide to save and how frequent your deposits will be. Remember, little drops of water make the mighty ocean.
- INVEST – Planting your money in places where it will yield interest is the best thing you can do with your money. Industries, sectors of industries, and corporations have created great avenues for investment options for individuals or groups of individuals. Agriculture, real estate, shares, stocks, bonds, petroleum, manufacturing, etc. Finding a great investment opportunity is like acquiring gold whose value never diminishes but can still appreciate with time.
- WISE SPENDING Our people say that money is like Okra soup and if you don’t hold it tightly it will slip through your fingers, this saying is so true. Having no vision for your money, engaging in impulsive buying, reckless spending, peer pressure, and the inability to resist the temptation of living according to societal standards have led many to return to square one.
While studying Economics, we are informed about the importance of having a scale of preference. It helps us prioritize and determine what’s more important at a given time and learn to forgo lesser needs based on the available budget.
Budgeting is the key to financial planning. It does not matter if you are rich or poor; working on a budget makes you a good financial planner and can prevent you from engaging in frivolous spending that leads to misappropriation of personal funds.
One frustrating aspect of our finance is the lack of accountability. Prepare where you want your money to go and plan how you want your money to grow.