Having a level of
financial security is the goal of everyone. There are many who find themselves in financial debt, financially broke and insecure despite how much they earn.
Read more about Finance
However, others are simply earning below their total living expenses. Their earnings can’t even stop their simple lifestyle. In this article, we are going to see 9 ways to take control of your finances.
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Read Books And Financial Management
This is the first step towards financial management. If you seek to control your
finances, read up on strategies towards increasing your knowledge of how money works by seeking financial wits and wisdom from books written by experts.
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Live Within A Budget
Living a life without a budget is like inviting poverty and debt as a result of overspending and engaging in incessant spendings. A budget keeps you within the spending limit, gives you direction on how much you’ve spent and how much is left. A budget makes you a discretional spender. Lack of accountability is the major reason for private and public financial misappropriation. Let your budget be on monthly basis.
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Cut Expenses
Ask yourself, what are those unnecessary expenses I indulge in? They could be that unnecessary Friday hangout with friends, Netflix subscription, data subscription and so on. Once your feeding, children’s fees, health, rent and utilities have been covered in your
budget, every other thing is miscellaneous – which isn’t necessary to be financed. The remaining money should be saved or invested with.
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Stop Eating Out
Studies show that people who prepare their own foods at home tend to save more than those who eat out. Foods in most canteens, restaurants, and cafes are three times expensive than homemade food. There are tendencies to get addicted to the sumptuous fast food offered by these restaurants, however, they’re digging a hole in your pockets. In order to save more money, develop the habit of eating in.
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Stay Off Debt
If you aren’t borrowing money to generate my money steer clear from getting a loan. Don’t get a loan to consume or service your needs. You’re digging your grave if you are doing this. Even if you’re in debt, pay off as quickly as possible. Let your current debt determine your expenses and spendings. Don’t rest until you’ve cleared your debts.
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Have Multiple Stream Of Income
The reason why you’re in the pit of financial insecurity is that all your spendings are funded by one source of income. If you want to take control of your finances, you must have another source of income outside your primary job. When you have multiple streams of income, you can easily fund the lifestyle you want and stay out of debt. If you have a 9-5 job, you can start a side hustle in your home front.
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Live A Saving Life
Poor saving culture is the reason why you aren’t out of that financial mess. No matter the pressures you face, having a good sense of saving culture can make a controller of your finances. Make an effort to save at least 40% of your earnings after settling every household need. You can choose to save a thousand Naira daily. Little drops make a mighty ocean. Don’t eat it all.
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Have A Financial Plan
Having a financial goal, may be a goal of earning 12 million Naira annually can give you a sense of ambition to achieve that. It can either make you start another stream of income, saving hugely, investing wisely or even seek better job opportunities where the pay is higher. Having a sense of achieving a milestone can help you take control of your future.
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Become An Investor
This is a way to multiply your money, especially when you invest wisely. You can make money in two ways–you can actively earn it by working for it or earn it passively, while you sleep, by saving or investing the money you have in stocks, bonds, mutual funds investment, real estate or other financial instruments. Since the long-term average annual return of the stock market is 10%, or 6% or 7% after adjusting for inflation, investing in the stock market is a great way for the average person to build wealth.
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This article was first published on 25th August 2021
nnaemeka-emmanuel
Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.
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