Good Morning 😃
How are you doing?
The first quarter of the year is when we set lofty financial goals, promising ourselves that we’ll be swimming in cash like Otedola by the time we reach a certain age. But let’s face it, life has a way of throwing curveballs at us, like unexpected expenses, a sudden obsession with online shopping, or the realisation that we’re just not cut out for the swing in the stock market. Lol! So, if you’re feeling down about not hitting your first-quarter financial goals, don’t beat yourself up about it. Remember, Rome wasn’t built in a day, and neither was Jeff Bezos’ net worth (even though it feels like it). So sit back, relax, and let’s discuss what you can do to improve your finances in the second quarter.
But before we get into that, you need to take stock of your finances for the first quarter. Taking stock of your finances requires a thorough review of your financial performance. This entails assessing your income, expenses, savings, investments, and any upcoming expenses or financial commitments. By analysing your finances, you can determine if you are on track to meet your financial targets, or if you need to make adjustments to your budget or investment strategy. This will also help you identify any potential roadblocks early and make necessary adjustments to your financial plan to stay on course.
If you have done this, let’s now discuss how to improve your finances in the second quarter.
1. Switch banks
One financial improvement you may need to make in the second quarter is to move to another bank. If your bank is charging you a lot of fees or not paying competitive interest rates, you’re losing money. And you may need to make a switch. When making the switch, you may want to consider banks with lower transaction fees, higher interest rates, access to better technology and financial products, and of course, duly licensed. This is not the year to be emotional with your money or form first-registrant candidates. If a bank is no longer fulfilling the purpose for which you opened it, then make the switch. It’s a hard truth, I know.
2. Separate your normal bank account from your savings account
You can’t be serious about financial freedom and use the same account you use for your everyday transactions as your savings account. No, you won’t do that. Look for an account that can be designated to savings alone. If you already have a savings account, you’re halfway there. If not, find one with a good interest rate and set up an account there. Automate a certain percentage of your earning to this account every month. The money will grow without much effort on your part. I would recommend the Ladda App for this. It’s a savings platform that offers you up to 10% interest per annum. Here is the link to download the Ladda app for Android users; https://play.google.com/store/apps/details?id=com.ladda.ladda
And for iPhone users
3. Create a budget
We would never get tired of saying how important budgeting is. It is essential to track your expenses and income to understand where your money is going. Create a budget that includes all your monthly expenses such as rent, utilities, groceries, and transportation. Be sure to allocate some funds for savings and investments.
4. Reduce your debt
High levels of debt can hinder your financial growth. Consider consolidating your debt or creating a debt repayment plan to reduce your debt faster. Paying off your high-interest debts first can save you a lot of money in the long run.
5. Increase your income
Consider taking on additional work or starting a side hustle to increase your income. This could be as simple as freelancing or selling items online. It’s important to ensure that the additional income goes towards your financial goals.
6. Build an emergency fund
Life is unpredictable, and having an emergency fund can help you stay afloat during tough times. Start by setting aside a small amount of money each month until you have built up a substantial emergency fund. The amount you should aim for depends on your living expenses, but having three to six months’ worth of expenses saved up is a good goal.
7. Invest in yourself
Finally, invest in yourself by expanding your knowledge and skills. Consider taking courses or attending workshops that could help you advance in your career. Investing in yourself will pay off in the long run and help you increase your income potential.
Do you have any questions? You can send an e-mail to info@themoneyafrica.com or send a DM to any of our social media channels.
***
MoneyAfrica premium plan
Are you a mid to high-income earner? Do you find communities a bit too busy? You should sign up for our premium plan.
You can learn more about that here
Thank you for reading Money Africa’s Blog.
Please feel free to share it.
MoneyAfrica premium plan
Are you a mid to high-income earner? Do you find communities a bit too busy? You should sign up for our premium plan.
You can learn more about that here.
***
We often get questions regarding how to plan your finances to align with your relocation plans, especially for students seeking to further their studies. As always, we have heard you, and we have put together an e-book to help you navigate this. Follow this link, to get your FREE copy of the e-book: The Japa Encyclopedia.
***
Get our annual subscription and learn more about investing safely and building a solid portfolio in 2023.
Don’t forget to:
- Join our community, if you want to smash your 2023 financial goals. It takes at least 30 days to build great habits that will last you a lifetime. So why not start now? There is a lot you can achieve.
- If you would like to document your financial journey in 2023, then our journal would be an excellent fit for you. It costs ₦7,500 (excluding delivery).
- Get a budget sheet to track your monthly expenses. Click here
- Get an investment tracker to be on top of all your investments. Click here
MoneyAfrica is a financial literacy platform. Our goal is to make everyone better with their finances.
We do this by engagements via our:
– social media handles
– platforms for paid community members (for adults and students)
– webinar sessions with corporate clients
Would you like to join any of the communities? Please click here
Would you like us to hold a webinar for your company’s staff? Please send an email to info@themoneyafrica.com
