February 26, 2018

Top 6 Finance Tips to Improve the Quality of your Life

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Money does not dictate your lifestyle, it's what you do to get it and how you manage your finances that determines your lifestyle.- Wayne Chirisa      

Regardless of whether you receive an average salary or have millionaire status, without financial intelligence, you could find yourself battling in this area. To be financially smart you don’t have to be a finance expert but you just need to have the ability to manage your finances efficiently. When you find yourself in a financial mess, it is time to pause and evaluate matters. You need to monitor your spending habits and be aware of your spending patterns. This is the first step that will help you realise why you might be facing financial challenges.  

There are so many ways to improve your finances for the better and make smart decisions. This may mean cutting down on credit cards and unnecessary expenditure. It also means that you will have to be more conscious about sticking to your budget, saving money and being loyal to your payments. When you implement these decisions, you will start to see a significant change.

Here are some personal financial management tips. 

1.      Create a Budget and Stick to it 

Balancing your money is the key to having enough. -Elizabeth Warren

Creating a budget is the best way to ensure that your finances are used efficiently. By creating a budget you are able to differentiate between what you need and what you can cut down on. This planning helps you avoid last-minute purchases that are not within your budget. This is not to say that you will deprive yourself of an amazing life or not be able to treat yourself now and again.  It simply means you have a full sight and awareness of your spending and financial commitment. You can always prioritise which spend matter and which ones can wait. You can even save towards these goals. Treating yourself should not harm your budget or prevent you from doing other things that you intended to do.   

2.      Find ways to Avoid Compulsive Spending and Purchases 

The speed of your success is limited only by your dedication and what you're willing to sacrifice.- Nathan W. Morris

It’s very easy to fall into the temptation of compulsive buying which results in overspending. These purchases are normally things you haven’t budgeted for but feel the need to have. This is where the self-discipline needs to come in to stop the urge to get something. When your priorities are clear from the get-go you can make smart choices. This is when you stop and say to yourself if you want to get, you do not have to get it now. This will give you sufficient time to think about the purchase and plan for financially.       

Here are some tangible ways to avoid compulsive spending:

Dealing with the emotions that lead to compulsive shopping
Don’t shop on an empty stomach- This will help you stick to the items on your list 
Unsubscribe from online shops and stop receiving notifications about the sales 
Get rid of your credit card and only purchase what you can afford
Stop using your accounts to purchase items

Money, like emotions, is something you must control to keep your life on the right track.-  Natasha Munson,

At any moment, you can be faced with unplanned expenses when events occur and require us to have money. You may need to pay for additional medical expenses, a burst car tyre or any crisis that needs finances may occur depending on the situation. It is to your advantage to have the finances available for these emergencies and ensure that they are only used then. This will protect you from creating unnecessary expenditure.          

3.      Buy in Bulk and plan your weekly Expenses 

Buying grocery items in bulk can help you save on costs. You get good deals, lower prices on items that are on special. For non-perishable food items, this can definitely be an option. This means that you won’t have to buy the same items for your next month’s budget which allows you to have extra money.  

Although not all people prefer using the cash method, it does help you stay within your financial plan. If you are disciplined enough you can still use the electronic method of payment and put away your savings separately.

Planning your expenses weekly helps you maintain your financial allocation. You can plan your meals, transport money and other weekly expenses ahead of time. This helps you avoid unnecessary spends such as buying takeaways. Another great idea that complements buying in bulk, is to do a bit of meal prep for work and school lunches. Certain foods when cooked and frozen can be a great go-to option that will help free up your time in the evenings and save money.

4.      Save towards your Goals 

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Before anything else, you will need to set achievable goals that you can save towards. Setting the intention to save toward your goals is a great way to help you save up. Writing down what you would like to achieve can inspire you. This can help you work hard towards saving for them. It will also help you stick to your budget and not spend money. Opening a savings account will help you accumulate enough money to achieve the things that you have on your wish list. You can create a timeline for yourself to help accomplish this.

5.      Commit to increasing your Profits 

During this period of evaluating your finances, you could also begin thinking of a second income. For instance, you can seek other jobs and ideas that will bring you an additional income and take the pressure off you financially.

Alternatively, you can commit to growing in your career and increase your skills in order to place you in a higher earning bracket.

6.      Consider consulting a Financial Advisor 

Consulting a financial advisor can save you a lot of money and give your insight on how you can spend your money in better ways. Finance experts have greater economic insight, which will give you a better understanding of how things work as they can provide you with a comprehensive analysis of your financial status.

Every time you borrow money, you're robbing your future self.- Nathan W. Morris

The benefits of consulting a financial advisor are that one; they can advise you on reliable investments or credit and warn you about those that could be illegitimate. Two; they help you see the hidden costs that cause most people to end up in debt. Three; they can tell you all about credit scores, how to save for your future and how to protect your assets. Finance specialists can inform you about how you can keep a credit score. They can also advise you on how to pay off your debts and make better decisions with your income.

Study a Finance Programme with Lyceum College 

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Do you have a passion for finances and just love reconciling figures? Are you always concerned about economic trends and can you see yourself becoming a finance professional? Maybe this is a career path that you can pursue. You can become a finance expert and gain some of the most lucrative job roles the field has to offer.  

Lyceum offers a Diploma in Management that will enable you with the proficiencies that are needed in this field. The course equips students with top financial accounting abilities to make them specialists in the field. The Diploma is recognised by the Institute of Administration and Commerce (IAC), which gives students the best prospects. With this expertise, you can provide business with the best financial services and create a profitable career. You have the privilege to choose from lucrative career paths such as becoming a financial advisor, Finance officer, an Accountant and much more.  

This decision to improve the way you handle money can help you do more with your finances.  

 

When money realises that it is in good hands, it wants to stay and multiply in those hands.- Idowu Koyenikan 

 

About the Author: Khanyie Dlamini Content Creator at Educor Holdings As a writer in the education sector I am passionate about nurturing people in their careers, wellness and personal growth. I focus on a variety of illuminating topics that are helpful to people’s growth and success. I hope to inspire people to feel motivated to live up to their full potential and know they can have an optimistic and prosperous life. My intention is to contribute to an empowered nation that makes great choices and positive change. Personally I enjoy the world of fashion and keeping up with the trends. I have great interest in digital trends and the impact of social media in today’s world. I enjoy learning from other creative people. I value having purposeful relationships with people who have great visions that align with my own.

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