STOP! STOP! STOP!
Stop for a minute and consider some financial habits you have that are adversely affecting your finances. Yes, things are tough, but you can drop some habits that make things even tougher especially on your pocket.
- Stop spending all you have, start saving.
Your first financial priority should be to build an emergency fund. Set aside a percentage of your income every month and do not touch it unless an emergency arises. Consider having a direct debit account with FirstBank, visit www.firstbanknigeria.com for information about direct debit account services.
- Stop making poor spending decisions.
Stop impulse buying. We spend a lot on buying nonessential items, such as buying the hottest new fashion item or gadget. Sometimes we spend to validate ourselves. Remember some of the most impressive things about you are not the things you bought.
- Stop irresponsible borrowing.
Sometimes, debt can’t be avoided. You may need a loan to get through school or start a business or even buy a house. However, drawing down lines of credit from family and friends to pay for things like aso-ebi isn’t good for your finances.
Borrowing money for things you can’t currently afford only puts you into deeper debt, making you more unable to afford even basic necessities. Try to avoid this type of expense.
- Stop paying bills late.
Every late bill or fee you pay is money wasted. Anytime you pay a bill late, you run the risk of facing a rate increase from your vendor or creditor. As our financial system gets more technology and credit score based, this is a habit that will adversely affect you financially. Limiting access to facilities and certain services can occur if late payment becomes a habit.
- Stop spending on the fly, keep records.
There is power in knowing what comes in as income and what goes out as expenses.
Keep a financial record of how money comes in, how you spend, and how you can budget for the future. This will not only give you financial stability but peace of mind as well. Stopping these habits of spending without planning may not be easy, (they are called habits for a reason). Here are some tips to get you started in breaking these financial habits that are not progressive:
- Don’t think about it, just start saving.
- Identify and acknowledge the spending habits that might be hurting you.
- Set specific goals and set milestones on the way to that goal.
- Make a list, (it’s easier to determine what is essential and not from a list).
- Limit borrowing and taking credit facilities, especially for non-profitable ventures.
As we enter the last quarter of 2021, let us do away with these bad financial habits and set a good tone for the coming year.
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