Financial Lifestyle
If you really desire to remain afloat in a harsh economy, there is need to evaluate your financial lifestyle especially if your monthly take-home can barely sustain you or meet your basic needs of life.
It is quite true that we are really in dire hard times and surviving in a downturn economy requires appropriate financial planning and prudence regardless of the social class.
Besides, the unfavorable situation has seen several people living a life of debts as their earnings can no longer sustain them due to the persistent rise in the prices of commodities.
With the value of Naira depreciating each passing day, the standard of living of the populace has been affected negatively and there is need to take a cursory look into your expenses. And make the necessary adjustments if you actually want to experience financial peace of mind.
This present economy does not guarantee anyone that is a reckless spender Financial Lifestyle stability due to unending inflation. And one way to beat it is to have a grip on your Financial Lifestyle by investing appropriately to increase your earnings.
There is no way you can make ends meet in this tough economy if you do not assess your financial lifestyle particularly if your take-home is lucrative and can barely sustain you till month ends.
Do you know that failure to priorities your needs put you in financial misery? That is why it is very crucial you mingle with people who are financially focus, setting realistic goals for themselves and making conscious efforts to reach their set goals.
Besides, making the most of your earnings by adjusting your lifestyles positively in an unstable economy like ours, gives financial peace of mind.
The under-listed tips will help you see the need to evaluate your financial lifestyle so as to place your priorities appropriately:
Prioritise Your Needs
When it comes to shopping, it is vital to know the difference between wants and needs as this would help keep you out of debt. Shun impulse buying by avoiding purchases that you can do without.
Try as much as possible to prioritise your needs to avoid borrowing and financial lifestyle complaints.
Before you make a purchase, ask yourself if you really need it. If you do not, pause before buying it. This principle is for you to x-ray your decision before making up your mind.
Do Not Compete With Your Associates
Do not compete with your friends or neighbours especially in the area of acquisitions. Be yourself, as it would help you a great deal and be contented with what you have.
Lack of contentment is the root of living a life of debts, which does not command respect.
Definitely, your friends or neighbours might drive better cars, have the newest technology, or take expensive trips, but that does not imply you must do the same or compete with them.
Avoid Debt
Adopting a pay-in-cash lifestyle can save you from falling into a debt trap even though it may not be rewarding particularly if you do not really have much.
Buying items on credit attracts interest either directly or indirectly. You cannot compare the amount you will pay on an item purchased in debt with that of a downright payment.
Have A financial Plan
It is important to have a monthly financial plan to improve your Financial Lifestyle, known as a budget, by creating a list of income and expenses.
This will enable you to keep track of what comes in and goes out. The single best way to ensure you live within your income is through a budgetary plan.
A spending plan is exactly what the name suggests; it arranges what you plan to spend.
To keep checks on your progress or lack thereof, you will need to track your money as you spend it.
This, however, involves the strenuous process of writing down everything you spent, dividing the expenditures into categories, adding them up, and comparing the sums with your plan. If you really want to live within your earnings and reach your goals, you have to track where your money is going.
Keep An Emergency Fund
There is a need to have an emergency fund in case of the inevitable such as sickness, rent, schools fees and other household bills.
To avoid financial lifestyle stress, it is expedient you set aside a certain amount of your monthly earnings, especially if you do not want to run from pillar to post when emergencies arise.
If you do not have three to six months of expenses saved up, start saving now so that when something goes wrong, you will not have to reach for your credit card or take out a loan to pay for it.
Shun Impulse Purchases
One of the ways which traders maximise profit is by encouraging impulse buying such that they place display items at their entrances, and present extra items by the cash register that they know that people will surely buy on impulse.
It is expedient you try as much as possible to evade every form of purchases that are not included in your buying list so as not to get entangled with their attractive deceptive packages.
By identifying these techniques and spotting them in stores, you can guard against the need to just fling another item in your car.
Reduce Your Expenses
If you are still struggling to live within your means, take a firm cursory look at your expenses to improve your financial lifestyle.
There is probably something you can cut out or at least reduce. And to do that, you need to go through your bills and annul any service you do not use frequently.
Enhance Your Income
If living within your income is very challenging such that savings are really out of the way owing to poor income flow coupled with family responsibilities, there is need to try to venture into something to augment your income.
The simplest and most rewarding way is to put in more efforts at your current job as you may probably get a raise, but if that is not possible and you habitually find yourself struggling to make ends meet, it is time to look for a better-paying job for the betterment of your Financial Lifestyle .
You have no right to complain about being underpaid if you are not ready to look for a better alternative.