From piggybanks as children and investments as adults, we all grew up with an idea of the value of money and that there is no such thing as free lunch. Money is just a means to an end.
Abojani says that financial awareness is very important to ensure that you go through the rest of 2022 and the years to come knowing how to make smart financial decisions. Whatever issue brought you here—the desire to control your spending, get out of debt and finally start saving.
What are some of the 7 ways to help you put your finances in order?
Examine your values.
On a basic level, nobody wakes up to go to work and then gets paid to watch their bank accounts fattening. Money helps you put food on your table, pay rent, move from one place to another and do more. Know yourself and how your behavior is impacted by both the availability and absence of money.
Create a budget
A written budget helps you track your income and expenses. It is important to save part of your income for reasons that we will look at in the subsequent points. A budget is a plan and anyone who does not have a plan is planning to fail.
Build up your emergency or rainy-day fund
Picture yourself without an umbrella on a rainy day. It’s ideal to have several months of living expenses saved, but any amount is better than nothing. Start small and gain momentum. Saving is a habit, a thing that we repeatedly do until they become part of us.
Pay off short-term debt
Debt can be a big financial distraction as it can lead to us losing focus on our long-term goals. Clearing debt or part of it is an investment because most loans have repayment interests that are higher than savings or money market accounts.
Set up a retirement account.
Our expenses will continue even in the years after we have become less productive or retired. It is therefore important to plan for your future.
Save and Invest more
What remains after budgeting for your expenses should take precedence when your income checks in. The secret to increasing your savings — whether it’s earmarked for your emergency fund or another savings account — is to pay yourself first.
Seek an accountability partner
Join the community of like-minded people such as Abojani and get a professional financial advisor to help hold you accountable in achieving your personal goals on investing debt management and investments.
This story is courtesy of a series of tweets from @theabojani.