Just like a bird money can develop wings and fly away when spent on the wrong things and for the wrong reasons.
The tendency to be prodigal with finances is always high, especially when your monthly take home is huge with added bonuses and allowances. But the moment you clock 30 or already in your 30s, you either wise up or expect to spend the later days of your life in penury and with regrets.
Everyone deserves financial freedom but only the prudent eventually becomes financially free. If you are thinking of creating a roadmap for yourself, consider these three financial resolutions to act on.
1. Have an investment account
One sure way of saving yourself a lot of stress and worry about your future is by having an investment.
Enduring wealth is built through solid investments and with an active investment account you can turn your dreams into reality.
Contrary to popular belief, you don’t necessarily need a lot of money to get started. Start small with whatever you can afford. And with the right amount of discipline with your expenses and consistency, you can be sure of smiling to the bank before you hit 40.
To make it more convenient, take advantage of micro-investing apps such as Piggybank and Alat. These apps are easy to use and they make investing simpler and accessible.
2. Build up a contingency fund
In relation to a known maxim, “whoever fails to plan, plan to fail.” And if you fail to plan for the rainy day, it is certain that you soon might bite your fingers in misery when life would decide to frown at you.
Life is unpredictable. Tomorrow, you might be out of job or battling with a medical emergency. It could be you losing out on a big deal and on the verge of bankruptcy. But whatever the case may be, a contingency fund often serves as the needed cushion to keep you at rest.
Depending on your preference, a savings account, a fixed deposit or a portfolio of stocks and bonds could be a suitable means to build your contingency fund.
The whole idea is to be financially prepared for whatever may occur in the future.
3. Make quality purchases
Understanding how you make and spend your money is very important to your financial safety (Moneywise)
It is wise to save and invest your money but it mustn’t be at the detriment of having the necessities of life that add value to you.
It is often tempting to save money by going for second-hand and fairly used items, whereas, choosing quality and new products or items will save you time and money in the long run.
Imagine buying a low-cost pair of shoes for N3,000 that only lasted for three to four months at the most. Then, you had to buy another for that same amount, making it N6,000 spent in total. But that same pair of shoes with great quality sells for N5,000 and could last you a year or more based on maintenance.
The purchase could be bigger – be it a suit, a car, washing machine, TV or a telephone. Whatever the item or product is, the smart thing to do with your money would be to spend in ways that will save you money later.
Learn to buy smart and right even when it is not often cheap. It pays off in the long run.