It’s never too late to start making financial resolutions this year. You can change how things turn out for your finances regardless of how much you earn.
Yes, mistakes you’ve made in the past or economic downturns might try to discourage you, but you can always make a difference.
1. Identify your past money mistakes
Track your expenses. Don’t worry about what this might look like, it’s okay if you’ve made terrible mistakes such as not saving, spending unnecessarily or not investing, as the case may be.
The goal is not to tear you down and make you feel guilty, the aim of this is to ensure that you learn from them and make significant changes towards making things better.
2. Embrace budgeting
The importance of budgeting cannot be overemphasised. It’ll make it easier to build a structure around your finances. That way, you’ll easily trace where all your money is going and how much comes in at the same time.
How do you begin budgeting? The concept is not a hard one. You can start by creating a highlight of your income, and expenses, not leaving out savings, investments and debts. Also, ensure to take things a step at a time.
A new habit cannot be formed in a day, it’ll take a while. So, give it time.
3. Save
Setting aside some of the money you earn or receive is a smart money move to make. It’s a better option compared to spending all your money without a percentage to fall back on.
Are you thinking of a good way to make great financial decisions? Try saving, even if you don’t know why; it’s a wise money decision.
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4. Invest
What’s better than saving your money? I’m not talking about saving in a bank. Instead, allow the money you set aside to work for you or yield returns for you. However, while this is great advice, one smart money move to make is that you should never invest in what you don’t understand.
5. Keep emergency funds
Life is unpredictable, and we must prepare for it in the best possible way. A smart money move in this direction would mean to create emergency funds and keep a fraction of your income for that purpose.
This will prepare you for any unprecedented circumstance that can come up at any point in time.
6. Never stop learning
Our finances are a crucial part of our lives and we can never learn too much about it. Never stop acquiring knowledge about money. It’ll make you wiser and more informed than someone who just leaves things to chance.
7. Be kind to yourself
In the quest to make smart money moves, remember to be kind to yourself. Give grace to yourself if you don’t meet your goals, pick up from where you left off.
If you make a mistake, learn from it and keep moving. Don’t be too hard on yourself. Be disciplined, but kind.
Remember, smart money moves are impossible to achieve if you are not willing to commit to the process.
