Christmas is over and the New Year is finally here!! It is a good time to evaluate your December
spending spree. Yup! The deals were pretty good and you couldn’t but buy them, but, did you spend too
You finally summon up the courage to look at your bank account balance and immediately, number
one on your New Year resolution is ‘Become more financially wise’ or ‘start saving more’ or
something financially inclined. Yet, we both know how intentions are easily dropped, so make up
your mind to start taking actions now.
We have 5 financial action points, to assist you with that New Year resolution for your finances.
THE BIG B (BUDGET!)
It may sound somewhat ambiguous and boring, however, it is super important and after all has been
said and done, you’ll wish you budgeted.
You could follow the 50/20/30 guidelines: 50 percent for essentials, 20 percent for savings and 30
percent for lifestyle or discretionary expenses.
For clarity, make a list of necessities that keep your life running; food, housing, healthcare, utilities
etc., and work your way up to other (important) expenses. Then make a list of your income and do
the math from there. Your estimates here will give you a more precise budget percentage guideline.
Cliché isn’t it? Yes, we hear it ALL the time to save like your life depends on it. What is really crucial is
whether you do so. Have a percentage of your income that you reserve for savings only and stick to
it or better still, raise the amount from time to time.
The best way to save is to put it out of reach. You could activate a Direct Debit on your account
while saving through RenMoney’s Target Savings product.
You could arrange your savings account such that it has no debit card assigned to it and the only way
to access it is by waiting on long queues at the banking halls. This might discourage you from
Also, save your loose change. Don’t say “Abeg, who still uses 10 naira in 2017.” It might seem like a
small thing compared to your bank account but you might be surprised by how much change you
can collect in a year.
PRACTICE OPPORTUNITY COST
Remember opportunity cost from Economics? That product that can be substituted for another
choice. When making purchases, select a product or service that gives the same quality and
satisfaction than a more expensive alternative offers. There’s absolutely no shame is living within
STALK YOUR CASH FLOW
This is where you ask your money those questions our parents used to ask us (Yoruba Questions
Ask it ‘Where are you going?’ ‘Where are you coming from?’ and every other relevant question you
can think of. “Oh, I have so much money, it doesn’t matter what happens to it anyway as long as
there’s money in my bank account.” Nope, we’re having none of that this year. If you’re more into
the traditional record keeping, great! Then keep your receipts and record your daily expenses.
If you’re more interested in the paperless movement, wonderful! Downloading an app might be
more suitable for you. Some banks make things easier by sending every debit and credit statement
to your email or your phone. Yes it will attract a little extra charge from the bank but if you’re the
type that throws your receipts around the place you might need this. Besides once you see how
much you are spending, you will probably seriously consider cutting back on your expenses.
CONTROL YOURSELF… PLEASE
If you don’t need it, don’t buy it. However if you feel you simply must have it, then put that on a
wish list for later when your finances are more together. Chances are the urgency to get it will die
out after a bit.
Sometimes, you really just want to release stress or boredom and you go on a shopping splurge. If
that’s your story why not do it this way, buy to sell at a profit. ‘Why buy at all?’ you might say, if you
feel that way, then control yourself.
You can do something creative like a no spend weekend, stay indoors, enjoy free entertainment and
skip the spending. You could even take up an inexpensive hobby like reading, watching movies
indoor etc. Online shopping could be another drawback, unsubscribe from daily deals site if you
You could do all this and when you get results, feel good about yourself. Remember that getting
more jobs can earn you more, but never really solves the initial challenge and at the end of the
year, things will probably repeat itself. We don’t want that now do we? So be financially wise.
RenMoney rewards you for saving your own money by offering amazing interest rates.
Remember, We’ve got your back,
The RenMoney Blogger.