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Money Wisdom Series: Improving Your Financial Situation In 2020

Feature Article Money Wisdom Series: Improving Your Financial Situation In 2020
JUN 10, 2020 LISTEN

For many Ghanaians, financial concerns are a regular source of anxiety, which is understandable given the uncertainties of today’s economy. Majority of Ghanaians go through financial stress each passing day and this affects their decision making and even their health. It’s important to remember that worry doesn’t solve the problem much, but answering the question of how to overcome financial problems does. This is the more reason why JJ.Afolabi has decided to use the MONEY WISDOM SERIES to educate and provide the tools and resources you need to make sound financial decisions for a comfortable life.

HOW DO YOU IMPROVE

Understand that you are not the first person going through financial, challenges. With determination, focus, discipline, commitment and right decision-making, you can improve or even turn around your financial situation. For that to happen, you must begin some savings and tangible investments now.

People are mostly caught up with a situation where they spend more than the income or salary they make as a result of unexpected expenditure, impulse buying and emergencies. Whatever the case may be, you need to have a positive mindset in dealing with the situation.

DEBT MANAGEMENT

Too many people think you can buy now and pay later. That isn't true. I've found that easy credit now makes people uneasy later. Usually a person pays more for the use of borrowed money than he gets in interest for saving it.

Every little debt must be managed well so it doesn’t get out of control. In the same way if your debt is large you must put in extra effort in paying it. Make sure you keep up the payment irrespective of how small the amount you can pay is just keep paying.

KNOW YOUR DEBT

  • List all the debts you owe
  • Make sure you know the amount you owe and the due date of payment
  • Keep track of all payment you make at each month end
  • Refer and review your debts list periodically

SET REALISTIC PERIODIC GOALS

It is very important to set very realistic goals for yourself each time to keep you focused. Most people do not set financial goals but rather make a new year resolution for things they wish to achieve which is very good. My question to them is, how do you achieve all the new year goals when you do not have a financial plan or strategy as to how to get the resolution into reality. Setting specific, measurable, achievable, realistic and timely (smart) goals each time is a catalyst to achieving your financial freedom and this must be reviewed every time when possible to ensure that you are making progress irrespective of how insignificant it may be. Keep it in mind that it is doable and you can do it.

WORK WORK WORK!!!!!!

One of the most effective ways of improving your financial situation is to reduce your WANTS expenditure and add on more work that can earn you extra income. Your daunting financial situation cannot improve when you have not changed your spending lifestyle, make it a must to discipline yourself to stay within your budget and look for ideas that when implemented can earn you some extra income. If others have been able to do it, you can also make it happen.

Use a monthly budget to plan your expenses

  • Keeping a budget helps ensure you have enough money to cover your monthly expenses each month.
  • Plan far in advance and you can take early action if it looks like you won't have enough money for your monthly expenses this month or next.
  • A budget also helps you plan to spend any extra money you have left after expenses are covered. You can use this extra money to pay off debt faster.
  • Reduce the WANT budget if you need more money to offset your debts for a particular month.
  • Stay focus on your expenditure and monitor financial happenings in the country.

©Jerry.J.Afolabi, unlike others is passionate about financial education, independence and financial freedom. He is approachable, provides one on one client engagement and genuinely interested in helping people to take control of their own finances.

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