When you hear personal finance, what pops into your mind? How to make money or how to save money?
Personal finance is way more than making money or saving it. It involves managing your finances overall including payment of bills, risk management through insurance or savings, investment, pension/retirement planning etc.
Many years ago, Nigerian youths seemed to be more predisposed towards investment than they are today. If you doubt this, try asking your parents when and how they acquired their properties, real estate or other assets.
These days, the young seem more interested in out-spending their friends and acquaintances, either to impress or for social clout. The importance of developing good savings and investment culture seems to be lost.
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To bridge this gap, it’s important to create a yearly personal financial budget/plan that can help you be more financially disciplined and make some well-informed financial decisions. Such a plan should contain expected income, expenses and how to pay for them. This could either be a short term or long-term plan.
Saving should not be your only or major source of future income, as money loses value over time. There are several smart investment decisions out there if you ask the right questions; be it real estate, shares, treasury bills etc.
Also, you should also consider retirement when making a savings plan. You’re not too young to start saving for your old age. So, put such money in income generating schemes such as those run by PFAs.
Through proper financial planning, we can all better our finances. Try financial planning, make personal finance great again????.
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