We have all wondered where our money went and what it bought. Many of us a few times more than we would like to admit. As the year starts we are all energized and ready to make wise financial decisions but inevitably we fall prey to the different financial situations we encounter.
In this article, we will explore various loopholes that leak finances and how you can master the game of financial prowess.
Learn how to budget – A budget is the first and most important step to getting your finances in order. There are many ways to budget and the resources are limitless. Find time to research budgets and adopt one that’s suitable for you. Often people complain that their money is already inadequate to have a budget or savings. If this is the case it is an indication of needing multiple streams of income. One income especially in Zimbabwe is not advisable. Find something you like to do and invest in that. The more the income the better the budget. Start small it will grow if you remain consistent.
Get debt out – Debt is not always a bad thing but at some point, you need to shred it off. The easiest way to start this journey is to remove your smallest debt. Tick it off and stay on course. Most people have a habit of getting into debt over trivial things like lunch or a pair of shoes. This is where budgeting comes into play, if you have a budget for the shoes or lunch you won’t need to get in debt.
Debt like mortgages and personal loans need proper planning, give yourself a timeline on when you want to be debt-free and calculate your income and budget accordingly. Paying debts should not strain your day-to-day, don’t be too hard on yourself. If you are to take a loan or mortgage be sure to think of the future and ensure that the terms are flexible according to your income. Some terms are stringent and defaulting will be heart-breaking.
Here at NMB Bank, we have a team ready to assist you and advise steps to take or suitable mortgages. You can email mortgages@nmbz.co.zw to enquire on available properties and terms.
Set financial goals – What do you want to achieve financially? This question can only be answered by yourself. Write down your financial aspirations and timelines. If it’s to buy a house in Borrowdale Brooke be sure to do your research on how much an average house costs, divide it by your budget allocation and multiply by the years you want to attain it. If it’s too much, don’t worry look for other areas and work on it. The goal is to be realistic and honest to yourself, not to say you can’t dream.
Smart career choices – A career formal or informal is your main source of income. In so doing make sure that your main source of income is stable and something you can do in the coming 5 – 10 years. Changing jobs is not a bad thing as long as your income is steady. The journey to financial freedom is not an overnight one or an annual one. It takes time and consistency. Whatever you choose to do, let it be a long-term thing.
Emergency Fund – Rainy days are part of life and when it rains be sure to be covered. When you budget make sure that a portion goes toward emergencies. These can be life emergencies, health or other unforeseen circumstances. Having an emergency fund will help you not deviate from your goal.
Invest in your retirement – One inevitable thing is retirement. One day we are all going to grow old and retire. Retirement is planned for when you are still young and able-bodied. Be it a retirement fund, investing in land or buying shares, whichever way you need a plan. Over the years many have lost their pensions due to uncontrollable circumstances BUT it is important to not be destructed. Have multiple retirement investments and plans (don’t put your eggs in one basket).
Live below means – We all love the glitz and glam and the finer things in life, but to build wealth resist the urge to live within your means. You might afford it but you can always get a cheaper alternative and the excess goes toward your financial goals.
Make your health a priority – A healthy lifestyle today is a good life tomorrow. You don’t want to be a 60-year-old on chronic medication with never-ending health complications. This will take away from your wealth building. Ensure that you do the right thing and get your health and fitness on track.
Get the right insurance – Be sure to find a good insurer to cover all your assets, life, and other important things. Insurance is critical for unseen things and will come in at the right time you need recovery. NMB Sure is NMB Bank’s insurance division that offers extensive insurance packages. Get in touch with them at bancassurance@nmbz.co.zw to get a quote or advice on which path to take.
Tips and tricks are many, ensure that you adopt to ideals that suit your behavior and lifestyle.
Article inspired by Ramsey Solutions