HANDLING YOUR PERSONAL FINANCES

Financial Tips to Help You Manage Your Finance Efficiently

Have you had some money before, the money you felt was a lot, then suddenly had it vanish? Well, you're not the first. Over the years, I've seen people struggle with their finances, both young and old, and the reason for this is not far-fetched, it's because they have little or no knowledge about how to manage their finances. In this post, I'm going to be sharing some basic tips on how to manage your finances and lead you on a new path to financial freedom, so stick with me.

I'm Ajibola, a finance student who is passionate about making people financially free by providing them with adequate knowledge of personal finance. My tips and suggestions have helped a number of people, and I'm pretty sure they would help you too. 

Okay, so before I drop the points, be sure to pick your book and pen and jot them down or be ready to screen grab them, you don't want to miss out on any point, right? Let's do Fin Tips 101.

1. Have multiple sources of income

As cliché as this sounds, if you don't have a source of income there won't be any finance to manage. So you may ask "How can I have a steady source of income?", it's simple, learn a skill, apply for jobs that match your interests or goals and make sure you have a steady income source.

2. Make a Budget Plan

You already have a source of income, next thing, you need to draw up a budget plan on how to spend your money. I recommend you use the 50:30:20 rule, that is, 50% of your income for necessities, 30% for your wants (you need to enjoy too sometimes, you only live once right), and 20% for saving/investing. This makes it easy to manage your money and be disciplined with your finances.

3. Track Your Expenses

So we already know how to plan our income using the 50:30:20 rule, next thing you need to do is learn to track your expenses. I recommend you create your budget monthly so you can track your expenses monthly too, so you don't end up spending more than you have placed aside, you don't want to be stranded before your next income.

4. Normalise Saving For "Rainy Days"

I understand that this tip might not sit well with an average Nigerian, but its importance can't be overemphasised. Emergencies can happen at any time and if you don't save up for them, you might be forced to go into debt to clear up the emergency, so to edge against unwarranted debts, start setting some funds aside for rainy days.

Okay, a bonus tip...

5. Pay off debt and stay out of debt

As much as saving is good, if you don't pay off your previous debt and stay away from debts, you will keep having problems and getting confused with your finances. So before you even think of saving or investing, I advise you to pay off your debts and stay away from them by using your budget.

I will be stopping here for now, did you get value? I'd love to know which tip stood out for you, and if this post resonates with you kindly drop some other finance tips you find helpful in the comment section below. Your questions are also welcome, I'd reply promptly. 

See you soon.