Financial Strategies for the Beginning of Every Month
Yay! It’s a new month. Everyone is excited. Your WhatsApp and other social media have been blowing up with ‘Happy New Month’ messages. The world is ready for a new beginning. But guess what? Many of you, yes you reading this, many of you don’t have a plan for your money and if you’re not careful, you’ll be whining at the middle of the month because salary/allowance only comes once a month. Oops! Did I hit a nerve? Sorry but not sorry.
Don’t worry, we’re all in this together and lucky for us, I have found a way to properly plan monthly finances so that there’s enough to pay bills, spend, save and even flex a little. Here’s how to do it in 7 easy steps.
1. Calculate Income and Expenses
At the beginning of each month, always make sure to evaluate your income and expenses. How much do you make in total? How much do you absolutely need to spend?
2. Update Your Budget
Next, you need to check your last budget and rework it. Find places to cut expenses by looking for more affordable alternatives and scrapping unnecessary things. If you didn’t have a budget before, now is a good time to create one.
3. Pay Off Debts
Do you have any debts? Student loans, mortgage, personal loans or payday loans? If yes, put aside some money and start to offset them. Depending on how much you have access to, it is always a good idea to pay off debts as soon as you can.
Once that’s done, commit yourself to life-long learning by allocating some money to personal growth. You can attend a conference in your chosen career or target save for an MBA. It’s all up to you really. But bear this in mind:
‘When you stop learning, you start dying.’ — Albert Einsten
Of course, this is so important and, we’ve made it easy for you on Pettysave. You can autosave, target save, lock in your savings and even invest at very reasonable interest rates ranging from 5 to 17%.
6. Emergency Fund
Life is so unpredictable and although nobody prays for this, crisis is sometimes inevitable. So, it is always advisable to have an emergency fund that you can easily tap into whenever an issue arises. Make sure you always have at least 3 to 6 months of living expenses put away for this purpose.
And of course, the best way to make your money work for you and grow over time is to invest wisely. Pettysave is a really good place to start as . You can always send an email for advice on the best investment options specialized for you.
If you’ve read this far, thank you and happy new month! Remember, friends don’t let friends spend all their money.
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Oyin from Pettysave