Want to be financially responsible in 2020? Then you need to do the following:
The first place to start is by making a plan. Preferably, you should have an overall monthly plan and then a weekly one that ensures you do not go overboard with your spending. For instance:
Salary: N100,000
Subtract bills: N20,000
Remainder: N80,000
There are 4 weeks every month. Divide this remaining N80, 000 into 4 for each week. This could be N20, 000 every week.
Just make sure it covers everything from transport, food to other daily expenses. To further increase your chances of sticking to your spending plan, withdraw exactly what you need for each week and do your best to spend just that.
Leave your card at home and carry mostly the cash you need. You should have a little extra for emergencies.
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Knowing where your money goes helps you find your spending leaks and figure out how to cut back on unnecessary spending. You can track your expenses with certain apps or by using a spreadsheet.
A quick poll online showed that many Nigerians want to save more this year. You can do by setting a specific goal like saving for rent or emergency fund or vacation then set aside a particular amount that is automatically withdrawn from your account as soon as your salary comes in.
To illustrate:
Salary: N200,000
Expenses: N150,000
Automatic savings: N50,000
With automated withdrawals, you have nothing stopping you from putting money away regularly.
Making a list before you leave your home to the store makes it easy for you to make smarter spending decisions. By sticking to it, you can resist the temptation to buy things you do not need.
The best way to avoid going broke and having to deal with debts is by creating an emergency fund. This means you have something to turn to when those unexpected expenses come out of nowhere.
You should set aside a particular amount that goes into your emergency fund as soon as your salary comes in. Remember. this is an emergency fund so make sure it is an emergency, not a situation caused by spending recklessly.
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