Research according to Wells Fargo Investment Institute shows that “Nearly half of millennials haven’t started saving for retirement.”
Raise your hands if you are guilty of this…
Truth be told, how many of us who are just starting out in our career journey think about retirement?
You don’t have to be retiring next week before you think about retirement or prepare for retirement. You can start preparing for your retirement NOW.
The same goes for saving and investing your money. Where are you putting your money? Is your money working for you?
Here are some finance tips you wish you knew before now:
Start saving for your retirement now
Don’t say you plan on retiring 40 years later! That’s fine but imagine how much you would have saved 40 years later if you start saving towards your retirement now?
As much as you can, Avoid Loans
I know, I know; sometimes you may need money badly but there is nothing you can do about it but to seek a loan. I advise that before taking that step, you look around you and find alternatives. For instance, if you want to take a loan for your business to get raw materials, can you instead find suppliers who you would be willing to accept your payment based on when you sell your goods and so on?
Stop spending money on things you don’t need
I wish I knew this earlier! There were times I bought things I didn’t need just for the sake of it or just because it was ‘cool’ to have. I wish I knew better! Stop spending money on things you don’t need.
Manage your expenses
There are really cool Apps like Monefy, Reach, etc. that will help you manage your expenses. Track your daily expenses and know where your money is going. You might just be surprised that you may be spending more on irrelevant things.
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Save, save, save!
This cannot be reiterated enough. Save a portion of your money. Stash it someone safe in the bank and save it. Just keep it. You never know when you will need it!
Stay on a budget
Apps like Reach will help you stay on a budget and easily track your expenses. Staying on a budget is one of the ways you can avoid going overboard with your spending.
Invest your money. There are good real estate companies that allow you pay in instalments for a property or land; find one that suits your budget and needs and invest. You can also invest in mutual funds!
Assets over liabilities
Please please, invest your money in assets and avoid the liabilities. Before you purchase something, one of the things you can think about is this, ‘Is this an asset or a liability?’ An asset is simply a valuable resource that will provide value in future.
Just because it is on sale doesn’t mean you are saving money!
I wish I knew this earlier! We are all attracted to that big bold lettering that states ‘50% OFF, BUY NOW, PROMO ENDS TOMORROW!” LOL. If you spend all you have in order to get that bag or shoe or cloth on promo, it doesn’t mean you have saved your money. You have just spent all your money! However, if you have more than enough money and what you are buying is of good quality and will last you for a long while, then you might just have invested wisely.
What are some of the finance tips you wish you knew before now? Comments below, let’s hear from you!