Personal finance tips that will change your life: part two

This article is a follow up to last week’s; Last week I shared three financial tips that will help you become financially stable; never co-sign a loan, make saving a habit, and always review your bank account transactions. This week, I’m going to share five more personal finance tips that will change your life:

Spend What You Can — It is known that most of us spend more than we earn which leads to debt and stressful life. We must begin to learn how to live within our means; most of us are not used to living within our means. We can learn how to spend according to our income; this does not mean buying cheaper and cheaper things but planning our spending wisely. Learn to spend within your means and you will avoid many money problems.

Don’t Borrow Money You Can’t Afford — In an ideal world, everyone would have enough money for his needs but that is not the case so some of us have to borrow money to meet our needs. But bad credit can cause serious problems that affect your finances and therefore your life. Don’t borrow too much and if you do borrow, make sure it’s within your limit and that you can pay it back quickly.

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Don’t Lend Money You Can’t Afford to Lose — Here is the rule of lending money to men; If you can’t afford to lose it, don’t lend. For example, if someone wants to borrow money from you and you want to use that money in the near future, don’t lend it. My advice if you decide to lend someone money is not to expect your money back; this will save you the headache of chasing down someone to pay you and set you up for worse financially.

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Have an Emergency Fund — We never know what will happen to us and life will happen (ie, job loss, car breakdown, etc.) to us at any time so we must be prepared. An emergency fund is very important because it can keep you afloat in times of need without relying on expensive short-term loans. So how much should you save for your emergency fund? A good rule of thumb is to have an emergency fund that will cover six (6) months of your living expenses. It’s not too late to start building your emergency fund so start saving!

Find a Financial Advisor — Even if you have almost no assets or enough money, it is good to ask for advice about your finances. A financial advisor will help you identify your financial goals and guide you in the right direction on how to get there. Don’t wait until you have a crisis to seek financial advice, do it now.

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In closing, I want to reiterate that you don’t need to be rich to take control of your finances. In today’s World, financial literacy is needed more than ever; whether you are poor or rich, managing your finances is essential to having a financially stable life. I know that in the beginning it can be difficult to plan and live your life around your financial goals, but little by little you will ensure that every life choice you make, brings you closer to your financial goals. . If you’re still reading this, I’d like to assume that you’ve decided to take your financial life seriously, so get started!

Kelvin Mkwawa, MBA is a Seasoned Banker. He can be contacted via email address: [email protected]

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