Bad habits are hard to break. When it comes to spending or putting your money to work for you, a bad habit can make all the difference to your personal finance. Maybe you already know that you need to spend your money more wisely but you haven’t quite figured out where to start. If that sounds like you, here’s what you need to do:
If you understand your history, influences early in life shape who we are in our adult life, including our investments. So take a look at your parents and other influential people from your childhood and you will most likely see a strong resemblance in your own spending habits.
Did you grow up around spenders or savers? People who splurged or invested?
Do you see any patterns that you have taken with you to adulthood? Take notice and take action to make a conscientious effort to curb any of the bad habits that you were exposed to.
Try to know what you value and make a list of what is truly important to you in life. It will be different for everyone, but in the end, knowing what you truly value will help you in making sure that your investments are in line with your goals.
Once you have that list, you can evaluate your money decisions against it. I’m sure that you will be surprised to find how much of your spending does not contribute to the overall happiness of your life.
Experts advise that you should always track every kobo that you spend for at least three months to see where your money is going and create a budget so that you will have a plan in place to make sure that you are using your money the way that you need it to be used.
However, consider stocks as an investment option. Many people are afraid to go into the stock market, especially if you aren’t sure how the whole thing works. Many personal finance advisors agree that the next few years are a chance of a lifetime to consider stocks. Do your research and you may find yourself in a very favourable situation.
Don’t invest in something you don’t understand. Make sure you do your homework properly on what you want to invest your money in. If Mr. A from work has this ‘great lead’ on a sure investment, don’t take his word for it.
Research your investments on your own before you make them. It’s kind of like taking a car out for a test drive before you buy it. You can never be too sure with your money.
The best course of action to take for your finance’s is to know where your money is invested, be patient and seek financial advice. Even though these times are tough, now is actually the best time to make your investments truly pay incredible rates of return.
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