Here’s my first post for 2024 – Happy New Year! I’m pretty sure that you want to do better in your finances this year. Let’s start with you not going broke this year. To attain your desired financial success this year, here are five ways to avoid being broke.
Don’t spend money you haven’t received. It’s tempting to act on promised or expected income, but it’s risky. The promised money may not materialize, and even if it does, unforeseen needs might arise. This is why it’s advisable that as much as possible, only spend the money you have received.
Practice delayed gratification. This takes discipline. You can’t satisfy all your spending cravings as they come; it will have a huge implication on your finances. If you can’t afford something at a particular time, wait till when you can. A wait for one to two months will save you from having your finances all messed up.
Have an emergency fund. An unexpected financial dilemma shouldn’t make you broke. An emergency fund should bail you out when you have an “emergency” situation. It’s more like an umbrella for rainy days. If you don’t have an emergency fund, take out the next few months to build one. Need help on how to build an emergency fund? Here’s a guide.
Exercise caution when lending money. Only lend to individuals whose creditworthiness you can vouch for. If you’re uncertain about repayment, only lend an amount you’re comfortable letting go.
Budget wisely. This helps you avoid wondering where your money went. Create a realistic budget outlining your spending based on your income. If it becomes apparent that your income won’t cover expenses, identify areas to cut back and stay within your financial means.
I hope you get to incorporate these tips into your finances and avoid going broke in 2024!
To your financial independence and freedom!