There’s a low key general notion that family financial matters belong to the husbands, but we differ on this notion. This was what one of our guest speakers at our 3rd Annual LagosMums Parenting and Networking Event #LMEvent2016, last year December, 2016; Rolayo Akhigbe explained!
In her words “Life can be unpredictable and so women must face the reality of planning for their financial future. You should start by understanding your money mind set and what money means to you. When you sort this out you can start to plan for the future you want. Financial matters is not gender specific, so women get involved.”
To drive this point home, she shared the personal experience that taught her the importance of being involved in the finances at home and then, 10 tips for financial success.
Tips for Your Financial Success
Tip #1: Understand Your Money Mindset
Your money mindset is the feeling you subconsciously develop towards money from your life experiences. It’s basically how you feel about money and it is one of the most important parts of having financial successful because our thoughts often control our actions. Do you have a negative mindset towards money? Do you often get anxious about money matters? Acceptance is the first stage. If you realize you have a negative mindset towards money, work towards a mind shift. Having a healthy money mindset opens doors.
Tip #2: Calculate Your Net Worth
It’s important to know what you are worth at every point in time. This includes cash in bank, fixed deposits, depreciating assets, other assets. This would help you know what your financial stability is, what risks you can take etc. and also make you actively look for ways to invest.
Tip #3: Create a Budget and Stick To It
For every income, have a budget and stick to it. This helps you save, spend wisely and even more importantly, allows you pay for all the important things without running out due to unplanned expenses.
Tip #4: Track Your Spending
Along with having a budget, track your spending. If you have put money out for miscellaneous for example, see where all of that money goes to. In time, it get’s clear, where you are splurging and where you can subsidize.
Tip #5: Pay Yourself First
This basically means Save! SAVE! SAVE! Before you spend on anything else, put money out for yourself. Preferably in an account you have limited access to; no ATM card or mobile transfer activated. It’s important to always have money kept aside. Once again, life can be unpredictable and so we must face the reality of planning for their financial future. Learn how to be financially smart!
Tip #6: Create New Sources of Income
Start a business, do freelance jobs, offer a service and get paid. New sources of income would help you plan ahead comfortably. Look within and see what you have. Think, what do I have that I can monetize? How am I going to charge for it? Many times, we help people out with things we know how to do extremely well, and hinge on the relationship. NO. Put a price on it and get paid for every single service. This is a very essential especially if we are to survive the recession!
Tip #7: Protect What You Have
Do not underestimate the importance of insurance. Take it very seriously. Life insurance, car insurance, everyone you could possibly think of. It’ll save you from unplanned occurrences
Tip #8: Plan For The Future
Plan ahead. For yourself, your children, your family as a whole. Would you like to give your children a certain amount money to start out? What can you do towards that now? It’s a good idea to have a specific amount of money sent to fixed accounts for your children that would be inaccessible till they are a certain age. That way, you know that funds are stashed away for higher education or to start out.
Tip #9: Be Accountable
Many people do not have the habit of looking through monthly bank statements, however, one good look at it would show you where the bulk of your money goes. And this would go a long way in helping you restructure your finances. Check what and who you are spending on. Know your net worth at every point in time. Ensure that you can account for every expense per income. Do it for your business as well. Accountability is key for any changes to happen.
Tip #10: Repeat 1-9
For emphasis! Practice every tip continuously until you make a habit out of them and you can be proud of your finances.
Which one of these tips do you need to get better at?