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5 PERSONAL FINANCE HABITS YOU SHOULD DEVELOP

Being money-wise is a major part of being a smart and stylish woman or man. But when it comes to personal finance, we tend to think we’re better at money matters than we actually are.  If you haven’t developed the following habits, your financial prowess might need a major improvement.

SETTING CLEAR FINANCIAL GOALS

Stop the wishful thinking and take time out to properly plan how you will achieve the financial status you want. Speak to financial consultants, take those necessary business decisions, and diligently follow each step to get to where you want to be financially.  You may feel a slight pinch or a heavy punch of discomfort now, but it will all be worth it in a couple of weeks, months or even years. Remember, good things take time.

SAVING

Have a dream? Save towards it. And as long as you’re alive, it’s never too late to start.  Be sure to save at least 5% of every one of your sources of income. Saving not only helps in accumulating wealth for something you wish to purchase in future, it also eases the sting of any unexpected demands that you may encounter.

INVESTING

Never put all your eggs in one basket. Rather put your them in baskets that keep multiplying your eggs. Research on profitable investments you can make in your home country and abroad. This creates an avenue for a continuous flow of income so that if one of your income sources is temporarily down, you wouldn’t have to go down with it.

PLACING A BOLD LINE BETWEEN YOUR WANTS WITH YOUR NEEDS

Your finances are bound to flourish with just a little bit of self-restraint.  Economically speaking, a want is a desire that we can live without, but a need is a requirement for survival. For those still second-guessing what category their designer collection falls into, your needs are food, clothing, shelter and basic hygiene products like soap, sanitary towel/tampons and medicine.  Once these are covered, you could then spend some buck on the luxuries. This doesn’t mean that you aren’t allowed to enjoy life to the fullest. Just be sure to match your lifestyle choices to your finances.

GIVING

Ever hear of the expression “Givers never lack?” Well, it’s true.  It may seem like a poor investment, and even though we can’t entirely explain this phenomenon, what goes around comes around. It’s like making an investment in which you are totally unaware of when you will receive the returns from it. Nonetheless, it’s always good to give to people that aren’t able to return the favour.