The current state of the economy has left many of us in dire conditions. For many the ability to simply make ends meet is something that has become impossible to do. Sometimes no matter how hard you work, it just seems like you simply do not have enough to keep your head above water. Hello, my name is Peace Hyde, and welcome to my weekly column a Piece of Peace where I share with you some motivational words that is helping me as I embark on my personal journey to be the best I can be.
Today I would like to share with you on the topic: THE PATH TO FINANCIAL FREEDOM!
There are 5 main principles that have helped me in my personal financial planning that I believe can help anyone who is currently struggling to cope. As a young student, I struggled with debt and poor money management skills, which in the long run meant that my personal freedom was taken away because I had to work around the clock to get myself out of Debt! I learnt from a very young age that the key to achieving financial freedom lies in efficient planning and discipline.
1. Living within your means.
We live in a world with so many wants and desires. Sometimes the temptation to belong or to be seen to belong to a certain social class means that, we go over and above what is financially comfortable for us. Spending more than you earn is never a smart thing to do! How we feel people will perceive us forces us to do things that we are not financially ready to do. Please do not let the societal pressures force you to do things you cannot handle. Always spend what you can comfortably afford and not a cedi more.
2. The earlier you invest what you do not spend, the more money you will have in the end.
The benefit of saving is something that I am sure we are all aware of. However saving alone is not enough. What is also important is how soon you begin saving. Most of us go through our young years without a care in the world or much thought to what we spend our money on. The earlier you start saving, the more money you will have aside for a rainy day!
3. Track Your Spending
Make sure you know what you’re spending your money on. You can do this manually by saving receipts, or you can use technology to help by tracking your spending with your phone or iPad. Always know where you financially stand.
4. Set up a Budget
Creating a budget is simply writing down what you want to spend your money on, how you’re spending it now, and adjusting to reach your goals. It can be a simple list or a more complicated chart. Either way, writing down what you plan to spend your money on helps you stick to your plan and avoid impulse buying. Separate your “needs” and “wants”, making sure you have enough for your needs, while saving for your wants.
5. Learn How Credit Works & Use It Wisely
Credit is getting something before you pay for it and promising to pay it back later. When you borrow money on credit you have to pay interest to use that money. Sometimes it is best to only buy things you can afford. You may get the product immediately on interest today, but the long-term financial burden may not always be worth the short-term rewards.
We are in very turbulent economic times where every single cedi counts. Do not be a victim of poor financial planning. Take control of your financial situation today and remember, you do not have to be rich before you start being smart with money.
Thanks for your time today. As always remember not only to be yourself, but be the best version of yourself because everyone else is taken.