Learning how to handle money is the first step to achieving financial
freedom and getting that priceless feeling of being in control of your
money. Jumia Travel, the leading online travel agency, shares 6 money
lessons you should know.
Learn How to Act on Your Thoughts about Money
It’s not
enough to just envision the great things you intend to do with your
money, you should learn to act on it and execute it. It’s not enough to
just think about money or plan with it; you need to take action on it.
Set goals for yourself and take guided action on it to achieve the
desired results. Don’t be reckless with the execution of your ‘money
plans’. Be wise, careful and meticulous. If you’re doubtful of how
effective this is, give it a shot and see.
Learn How to Talk about Money
Money is such a sensitive
topic in a wide range of settings; therefore you must learn how to talk
about money to gain better control of your money and finances. You can’t
run away from it, it simply must be done. Learning to regularly discuss
about money helps ease things out and makes money matters become less
of a taboo or a hot topic. There is an acronym called HALT, which you
should consider during or when initiating financial conversations. Don’t
have a money conversation with someone who is Hungry, Angry, Lonely or
Tired. Every other time outside these four are fine; common sense will
guide you through the rest.
Learn to Live Within Your Means
This speaks for itself.
There is nothing more to be said on this point again. Live within your
means. The key to financial success is learning to modify yourself to
live either slightly or even below your means, never above. There are a
lot of ways to live comfortably without spending every penny, but this
fact eludes so many. You should look at your budget and spending habits
as a kind of “project that needs monitoring and occasional adjustments”
and be disciplined about it. Keep tabs on your spending and learn to
hold yourself accountable, before someone else does in an extremely
embarrassing way.
Learn How to Budget Better and Prioritize Your Spending
People
wrongly equate budgeting with some form of self-sacrifice; however
budgeting is simply being responsible with your money. It’s taking care
of your money to be sure it’s in the best possible shape, just like you
do with your body and health. Money is too important to be reckless with
it, so you need to learn to budget and learn to budget well. Have a
reasonable budget that responsibly (the key word is responsibly) caters
to your necessary needs, and prioritize your expenses to help you spend
wisely. Let your budget and goals match your spending priorities, this
way you get to have better control over your money.
Learn to Save
Don’t just save for the sake of saving,
save because you understand what saving is doing for you and your future
financial goals. Also, be sure to never forgo your ‘rainy-day fund’ or
‘emergency savings’, because whether you like it or not there will
always be a rainy day. Some banks can help with this, as they have
flexible and reasonable saving schemes to prepare for these times. Also,
insurance is another good way to save for rainy days or emergencies.
Don’t think insurance and insurance companies are useless. That could
very likely be a mistake on your part.