At the end of the year, everyone has a dream and a renewed energy to make it come true. This
personal expectation is like a cycle. Everyone wants to be successful, at least in their heart of
hearts, but not everyone is successful.
Below are 25 actions you can take if you want to improve your personal finance this year.
1. Look Back Over the Past Year
The first thing to do is to analyze the past year. Research shows that less than 10% of people
who make a ‘new financial resolution’ each year stick to it for the whole year. Are you wondering
what you failed to do with your resolutions at the beginning of last year? Why do you keep doing
the same thing year after year? Take a pen and paper and review your financial activity from
income to expenditure over the past year. When you break it all down, it will become clear why
your financial aspirations have not been realized. You may even find that you are spending
more than you earn.
Here’s an easy way to find out. Make a credit and debit ledger. No matter how small your
income is, write down your income on the credit side and your expenditure on the debit side.
Total up each side. If the debit side is more than 30% of the credit side, do you still wonder why
your financial dreams have been out of reach for the past year?
2. Make a Money Checklist
The second step is to create a checklist of all your financial matters. The second step is to make
a checklist of all your financial matters, putting “emergencies” at the end of the checklist. This is
because emergencies happen all the time and can dent your plans if you are not adequately
The best way to create this checklist is to divide each financial issue into months. Many people
go through the year believing that they have everything organized in their heads. There are
more reasons to fail because people tend to have poor memory. If you keep things in black and
white, you’ll feel more motivated every time you look at your checklist. Alternatively, use a tool
such as’PocketGuard’ or’Spendee’ to help you.
3. Set a Specific Financial Goal
Once you have created your checklist, the next step is to set a financial goal with a specific date.
A wish becomes a goal because the date acts as a deadline and puts strong pressure on you to
achieve it. A goal without a specific date for achieving it is not a goal. You are just hoping. Sadly,
this is what many people do.
By specific, I don’t mean saying “I will earn 1 million nairas in August 2018”. Let’s be more
specific with dates. Instead, say, for example, “August 30, 2018”. That way, it becomes a goal you
can wake up to every morning and chase.
4. Stick to Your Budget
What many people fail to do is to stick to their budget. This shows a lack of discipline. Set a
budget and learn to work within it. That way, you will be able to fulfill most of your financial
plans and obligations. If you go over your budget, you will be in debt, which can be disastrous. If
you can’t plan a budget in black and white, great digital tools such as Wallet and Personal
Capital allows you to keep track of your budget on your mobile phone; some, like PocketGuard,
will even warn you if you’re spending over budget. Use these tools to make your life better.
What you should never do is make a budget in your head.
5. Spend What’s Left After You’ve
Put this rule into practice today. Save at least 10% of the money you earn. Here’s the hard part –
many people don’t have the discipline to do this. To achieve this it is important to separate your
business income from your finances.
6. Leverage Good Debts and Avoid
Everyone should like debt. This is the principle of the wealthiest people in the world. They love
good debt and hate bad debt. Good debt increases your cash flow and, if managed well, can
give you financial freedom. Bad debt, on the other hand, can lead to needless extravagance, put
you under serious pressure and make you feel miserable. if you need to boost your personal
finance in 2018, try to avoid bad debt.
Good debt is incurred to meet worthwhile financial obligations, such as business purchases,
investments, shares, or property – these will increase your financial benefits over time and
make you independent. Bad debts are incurred to buy luxuries that you do not need, such as a
car, a holiday trip, or the best proposal dinner. These luxuries do not increase your wealth.
Rather, they take away from what you already have. You have to decide which you prefer.
7. Pay Off Small Debts First
By now you’re probably saying, “But I’m already in debt. But I’m already in debt, and my debtors
are breathing down my neck. That’s all well and good. But let’s focus on sorting out the bad
debts. First, list your debts in order of size. Then liquidate the smaller debts in that order. Any
debt that has been paid off should be written off before moving on to the next debt.
The reason for this is simple. The fewer debts you have, the easier it is to pay them off. The
more debts you write off, the more confidence you will have in your ability to manage larger
debts. This confidence leads to the feeling that you don’t want to keep up the show of writing
off your debts every year. In other words, you will be a better financial manager.
8. Live Within Your Means
This is a strange one. I’ve heard a lot of people argue that you should live below your means to
save reasonably. But I believe that people should live within their means. If they can
conveniently afford to buy up companies, they should do so. The key to living within your
means is convenience.
To measure your convenience, you need to be honest about your financial situation. For
For example, you may be earning a salary of 100,000 nairas a month and think you can afford a
two-bedroom flat in the city. However, you need to calculate your other necessary expenses
such as monthly food, clothing, benefits, transport, etc., and figure out how much you need to
live the life you want.
Here are some simple rules I advocate If your financial plan is more than 10% of your actual
income, you may be better off living within your means.
9. No Sense of Entitlement
In your field of study, not everyone owes you anything. So don’t get into that lazy mindset. In
both business and private finance, you are solely responsible for the decisions you make, your
successes, and your failures. If you get this through your head, the desire not to fail will become
a great motivator for you to make wise financial choices. You will learn to take responsibility for
your actions. The most successful entrepreneurs don’t sit and wait for favors from family and
friends. They don’t wait for favors from family and friends, they work hard until they achieve
success, despite repeated failures. And then you work even harder to maintain that success.
That’s how you should think too.
10. Avoid the Lottery
This may not be popular with lottery lovers, but if you can’t manage your finances well, then
don’t play the lottery. When asked, I say: “Lotteries are a business of luck, based on correct
views and guesses about a given situation. We spend money over and over again, hoping that
we will be lucky and win the jackpot. But what if you don’t?
Let’s say you do. Have you thought about how much you have contributed to the lottery over
the months and years, and whether the amount you win is worth your contribution? Some
people may be lucky enough to win the jackpot. But the vast majority of people don’t. The
wealthiest people know that waiting for the big manna from heaven is a lazy way to understand
the concept of luck. They know that luck is a deliberate effort of the individual, so they diversify
their portfolio before participating in the lottery.