It’s easy to look back and think about what you should have done differently —especially when it comes to money matters-. You tell yourself that you could have been much better off, if only you had taken other actions with regard to your finances.
But why wait until it’s too late?
Here are 4 things to do NOW, that’ll pay LATER.
1. Have a Budget
Considering the recession the country is going through, it already seems like we are on a budget. Nobody has that extra money to buy any extra thing.
But just in case the recession hasn’t found its way to your doorstep,it’ll be nice for you to have a budget of how you spend.
If budgeting makes you feel restricted, use a spending plan instead. With a spending plan, you identify your goals and determine where you want your money to go. Review your spending to see if it’s in line with your priorities.
Just make sure your Budget/Spending Plan is doable.
2. Have an Emergency Fund
You need a reserve of cash that’s easily accessible to cover unexpected expenses and help you get through financial emergencies without having to borrow, ask friends and family for money. By cutting costs and funneling as much money as possible each month towards your EF, you’ll have more cash available. A good way to make sure the money goes into savings before you have a chance to spend it is to set up an automatic monthly transfer from your checking account to savings.
3. Have a Savings Account for your Children
As soon as you decide to have children, you should start saving money to cover the additional cost of kids. Of course you can never save up for a child(ren) expenses but at least, you have a piggy bank.
You can start as soon as you are pregnant, if you assume 5000 naira per month, by the time your child is born, you will have 45,000 naira saved, you can continue till the child is about to start school.
4. Think about Retirement
It looks like its still a long time coming or you still have a couple of years. But the truth is you don’t. The earlier you start, the better for you.
You can make enquiries at any of the pension companies on how best to save for your old age. They can advise and give you plans based on your current salary.
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