This publication of financial decisions and steps guidelines is motivated and inspired from the movie "The Smart Money Woman" So let's begin. Ultimately, how we behave with money is deeply rooted and how we think about money but at the same time, fear can be crippling. What you deny or ignore, you delay. What you face and accept you conquer. Now let's start by being truthful to our and ask some questions. Now I will ask you: How do you see money? What is money to you? Are you easily influenced with money? Do you feel uncontrollable when you have money? Or you're the only one that matters when you have money? Your answers to these questions will let you know how you think about money and make amends if need be.
1. DEBTS: Debt can be a useful tool to attain financial success. But how you use it matters. Wealthy people at the other hand make decisions on how best to make use of debt as they see it as a tool to leverage their various investments and grow cash flow But as for the poor minded people, they believe and live in using debt to buying things that leads to making rich richer. if I should give a simple advice from what I have lent, it will be that you should only borrow to acquire an asset which you have researched on and know will appreciate in value. Personally as a young growing female adult I hate debt of any kind but we're all different. Sometimes it's worth it if you invest it wisely and be able to clear it without going bankrupt or having to start from the scratch again. Alot of times, I see people who know nothing about where the money they earn goes and at the same time can't tell ehat percentage of their incomes goes to in terms of food, clothes, transportation, etc.
I will advise that if you face that same problem, then it is a sign that you should start writing down everything you spent your money on in the last months and track it from there. Separate your findings into wants and needs. "Limit your wants and prioritize your needs." If you don't treat the money you earn with respect, it will leave you with no respect.
2. LIMIT YOUR WANTS AND PRIORITIZE YOUR NEEDS: This says it all don't just spend money because you have it however focus more on your needs and not wants. Naturally humans want to have it all which I think it's almost impossible, you should know that humans wants/needs are insatiable according to Social Science. You will always want to have more if you don't have financial control. Spend wisely especially in this our contemporary world, the economy is not smiling.
3. EMERGENCY FUND: Let's say you lost your job or source of income, How much do you think you would need to survive it? Don't worry, I will give you some steps: Strictly define possible emergencies, Store up your emergency fund, Invest in low-risk ventures. A smart man/woman doesn't wait for financial surprises; He/she systematically saves towards her emergency fund because he/she knows that this is the foundation of his/her financial journey.
4. ENTREPRENEURSHIP: The most popular answer these days to earn more is to "become an entrepreneur, start your own business." The reality is, not everyone is cut out to be a boss. My idea? Find your PURPOSE. Your purpose is the things that drives you successful. Just be sure that your idea solves a problem that people will be willing to pay for.
5. LIFESTYLE: Identify your core money values, do they match your lifestyle? Some of us in the name of packaging or not wanting to look like what we're going through we end up living a fake life. You should know how to balance your lifestyle with your source of income. Very essential.
6. WHAT TRIGGERS YOUR SPENDING? Think back to everytime you over spent or engaged in behaviors that's against the money goals you've set. Make a list of things that triggers you to overspend and make a list of ways to avoid these triggers.
Look around you, sometimes it's friends or what you see consistently that triggers your spending I'm telling you from experience. That's where influence comes in. Sometime ago I had so many vendors on my WhatsApp contacts. After viewing all I will be uncomfortable until I order for at least one thing whether the money I have is for something else or not. After buying most times I won't even like it again because I never really needed that thing and this continued for sometime. When I learnt my lesson the hard way I muted all the vendors status's. I only view when I really need that thing and financially ready to buy. Now your case might be different from mine, some persons can view from January till December and not moved to buy anything even if they have the money but in my own case it's different and I handled it the best way I could and it helped.
7. TRAGEDY: Don't wait until there's a tragedy in the family before you have conversations about the family finances. We need to start asking the tough questions. Is there any exist plan, life insurance, debts, deeds, brokerage, account, trusts, wills? Where are the financial records kept? Who is the next of kin? Funny enough when you start asking such questions in an African home,some of them will cast and bind you because they will think you want them dead which I think is ignorance. These conversations are necessary.
8. INVEST:
(i) Establish your investment goals
(ii) Develop an investment strategy
(iii) Determine your risk profile
(iv) Pick an investment firm
9. THE CARDINAL RULE: Do not invest in things you don't understand especially For the married and intending couples. When couples are coming together, it is very much important to discuss about certain things including the expectations of responsibilities each is willing to take. We all come from different backgrounds and carry our own money biases, and we often assure a synergy with our significant other, that may not exist when it comes to making financial decisions. One of the causes of marital crisis in our world today is money. Money is important as human in any institution including marriage. Both parties should discuss extensively and agree on mutual terms on how the earning, spending and investing will be done. Thank you for reading till the end. I hope you learnt something from this? and don't forget to bring in your contributions/disagreements so I can learn and improve for a better knowledge.
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