Financial Dos for 2013

The New Year has barely begun, and you have to admit, it’s pretty exciting. The year 2013 has never existed before, and it has presented us with 12 months of plenty new possibilities; a year where we can strive to drop those old and poor habits for adopt some fantastic new ones.

With that said, let’s get down to business, or rather finances and what we can do in 2013 to improve our personal financial management. After a careful study of a whole load of tips out there, I present to you some of the more relevant ones that should stick in 2013.

(1) Make a Budget. This is the broken record of financial tips! Make a budget and stick to it. This is not as difficult as it sounds; it simply constitutes making a list of expenses and finances, defining what’s a luxury and what’s a necessity (let’s face it the latest Samsung Galaxy phone is not a necessity, neither is DSTV). One simple way of tackling this is by tracking (recording) expenditures and reviewing at the end of a given period (say a month) and using these records as a back drop for your budget. Cardinal Rule: Do not go over budget and do not spend what you did not plan for.

(2) Find a cheaper Bank. At this moment the banking industry is saturated with more banks than finger tips. I tell you, there is a bank at every corner that have sprouted from nowhere. This advantageous for people like me that are always looking for a bargain. Let me explain; too much competition means the banks are always looking for ways to attract customers more so from other banks, and one of the strategies used is to slash bank fees. Bank tariff guides are usually available in banking halls and on their websites.

(3) Reduce Debt. This should have probably come first. We all need a bailout at some point and that’s where bank loans and credit cards come in handy. The relief from these is often welcome but somewhat short lived and the burden is usually too great and backbreaking. Resolve to lower debt this year and include it in your budgeting. The interest rates just keep escalating and every shilling of accumulated debt becomes a heavier burden on your entire financial strategy.

(4) Have a Savings/Investment Plan. Consider your budget and income and start small. Save a small percentage in the beginning and gradually increase as you learn how to live within your means. Savings come in handy on a rainy day so do make sure to have some “raincoat” money. An investment plan shouldn’t be so complicated. Investment is simply the use of money or capital to acquire assets in order to gain some profit. The profit can be interest, think fixed deposit income such as in a business or appreciation of value for example a piece of land.

(5) Financial Education. Try and read and understand as much financial material as you can. This will ideally help you make informed decisions.

The four girls are devoted to helping you improve and so we will expound on each of the above tips in their own blog post. For financial help or more information on the above related topic, contact us via email 4girlsforgirls@gmail.com or any other avenue on our ‘Contact Us’ page.