Good personal finance involves smart choices with your money that help you live comfortably while securing your future. From cutting down on your internet bundle to spending less on snacks, there are convenient ways of achieving your dream lifestyle.

Goal

Having a goal is important in personal finance. Before you start making plans on how much to save and for how long, you should know what you wish to achieve. This goal could be short-term, like paying a six month advance on your rent, or long-term, like buying a home to start a family. In addition to these, you should also be looking at life after retirement. Knowing your goal will help you decide how to reach it.

Earn More

More money could help you achieve your dreams and ambitions both in the short-term and the long-term. You could achieve this by smart overtime at your current workplace or by offering freelance services if they won’t constitute a conflict of interest. You can even sign up with a ride-sharing company like Uber to earn extra money in the commute to and from your place of work.

Check Your Spending

If you don’t know what you use your money for, it will be difficult to know how to cut back and secure your personal finances. Start by making a list of every expense you make throughout the day. At the end of the month, tally expenses that you have to make at all costs, like rent, food, and fuel. This is normally a constant figure from month to month. Then tally the other expenses that are not constant, like shopping, snacks after lunch, and money spent at the cinema. Cut down on the latter. Eliminating a cedi spent on extra plantain chips might not seem much today, but tallying them up over a year could save you hundreds of dollars. Reduce your use of social media to cut down on your internet bundle, and save you more time to invest in profitable activities. Cut down on the sweets too; you’ll be healthier.

Saving

The money you cut down from your variable expenses represent savings that could come in handy on a rainy day. To increase your savings, you should take a closer look at all your fixed expenses like rent, cost of fuel, and food. Is it possible to move to an apartment with a cheaper rent, for example? What about your car? Is it fuel efficient? Can you sell it and use a more cost-effective means of transport? If your colleague lives close by and has a vehicle, you can share fuel costs by using one vehicle. It comes with little inconveniences but good personal finance always means a secured future for you and your family.

Investment

After making cuts to your expenditure, a good personal finance strategy is to put some of those savings into high-earning, long-term investment vehicles like stocks and bonds. Make sure your investment has the right mix to reduce your risk exposure. It is important to speak to a good financial advisor first.

Good luck with your personal finance.