In Ghana, finances touch just about every aspect of your life. Your personal life and your financial life are not separate, they mingle and dance a complicated dance. While it’s important to have the right amount of money in emergency savings, retirement savings, and insurance coverage, it’s also just as important to live a full, rich life. Your money should not only provide a safety net but also a means to reach goals and accomplish great things.
Are you ready to overhaul your spending patterns, start funneling more money into your bank account and buy better (and safer) products in the coming year? If so, then today’s article captured an exclusive thesis on that for you. I’ve rounded up our favorite money stories to give you the bite-size nuggets you need to get your financial resolutions in place. Here are some basic reliable techniques to recover your finances in the coming year.
Start feeling good about money.
If you have a “money shame,” or something that embarrasses you or makes you feel badly about how you’ve handled money in the past, then make it a point to move on next year. Many people have trouble thriving in their current financial lives because they’re still dwelling on past mistakes. Most people need to understand their money story first, which includes assessing strengths along with relationships to spending, earning and giving.
Create your own money roadmap.
Simply asking yourself what your goals are can help set you on the path to achieving them. Thinking big and pursuing your biggest dreams, even ones that seem overly ambitious. To help increase the chances of success, also suggests sitting down with a spreadsheet to crunch some numbers and make sure you have money saved to fund your adventures.
Avoid unexpected costs of driving.
Driving is convenient, but it can also be surprisingly costly. You can get into accidents through no fault of your own (and end up having to pay the deductible if the other person leaves the scene or successfully argues it wasn’t his fault). Regular maintenance, including oil changes and repairs, along with registration fees and parking permits, also add up. Sometimes taking public transport (trotro) should be considered. I know many will not agree with me on this but will discuss this further in the coming weeks.
Recover from financial pitfalls.
Climbing back from bankruptcy or paying off huge amounts of loans are no small feats, and if you’re in the midst of that kind of transition, you could probably use some support. Find friends who will help you stay on track with affordable activities and by serving as sounding boards. Keep your big goals at the top of your mind by posting them prominently in a place you look every day (like your desk).
Get better customer service.
No one likes staying on the phone for hours only to get an unsatisfactory resolution from the company you’re calling. To protect yourself, try to stick with companies that are known for their stellar customer service. It practically saves you time and airtime expenses.
Bump up your savings rate.
Automatic savings are often the easiest way to put money aside without too much effort; diverting money into pre-tax retirement accounts directly from your monthly salaries or setting up an after-tax savings account are two popular options. Most people need to save at least 15 percent of the income to be on track for adequate retirement savings.
Figure out where you’re at
Before you start worrying about where you want to go, you first have to figure out where you are now. In this technique you’ll create a net worth statement, which is essentially an honest measure of your current wealth. You do this by tallying up the value of what you own (your assets) and what you owe (your liabilities).
When you subtract your liabilities from your assets, you get a number that represents your net worth. Your net worth statement is an important tool that charts your financial progress over the years. For instance, if your net worth is going down, you’re eroding your wealth and making it harder to achieve your goals. If it’s increasing, you’re on your way to getting richer and achieving your financial goals.
Fall in love with money.
You have to fall in love with your money before you can start managing it well. That’s why I encourage people, especially young ones, to explore their feelings toward finances and where they might be struggling. The way we interact with something, the energy we have or emotion we have, will determine the results we get. Most people deal with money from a place of fear, anxiety or debt, and that doesn’t work as well as dealing with it from a place of love.
Keep your financial life off Facebook.
It might be tempting to brag to your friends about your personal finances, but it’s actually better to keep that information to yourself. That’s because Facebook and other forms of social media are public places where fraudsters are also lurking and looking for personal information they can use against you. In general, when it comes to money, the less you share, the better.
But go ahead and Tweet at your bank and favorite store.
Banks are increasingly using social media, including Twitter, and Facebook to communicate with customers, especially when they’re having problems. If you need to get the attention of your bank, feel free to do so over Twitter because you’re likely to get a quick response. But never share any personal information, such as account details or your address, publicly.
Retailers are also very active on social media, and they often announce their biggest discounts to their followers and fans first. As a result, “liking” your favorite store’s Facebook page or following them on Twitter can help you be among the first to know of big sales.
Review your insurance policies.
Car insurance policies vary by deductible amount, rental coverage and other key measures, and drivers are often surprised by those details after an accident when they need to rely on the coverage. Make sure you’re familiar with your policy; state buyers guides can also help walk you through the various options. Many people are underinsured when it comes to life and disability insurance; check up on the coverage offered through your work and consider supplementing it.
Prepare for rising interest rates.
Interest rates have been historically low due to or recent economic challenges, but most financial advisors expect them to rise eventually, and possibly soon. To prepare, borrowers can pay off debts and homeowners can consider refinancing if they haven’t already. (In fact, it might already be too late to lock in the lowest rates.) First-time buyers looking to make a purchase might want to consider doing so soon in order to take advantage of the still-low rates.
Pay less in taxes.
Almost everyone can reduce their tax bill. Most people pay more than we have to, and that’s a shame. Putting more money into pre-tax retirement accounts, investing in municipal bonds and starting your own business are a few of the ways to get started.
Protect yourself from credit card fraud.
Credit card companies are increasingly using powerful data collection and analysis techniques to spot fraud, but the first line of defense still involves customers themselves. Unexpected charges on your credit card statement or unfamiliar information on a credit report are among the first warning signs that fraud or identity theft has taken place. That’s why you should always look over your monthly statements and get your free credit report every year.
Get the most out of your savings account.
Most Ghanaians don’t have an adequate emergency savings fund, but part of the problem seems to be that banking policies don’t make it especially easy to promote savings. A study from the Consumer perspective found that many banking customers face hidden fees, restrictions on dormant accounts and very low interest rates. Fortunately, consumers have many options when it comes to bank accounts, and it can pay off to compare different accounts before choosing the one for your money.
Avoid online ticket scammers.
Buying and selling Websites offer an easy way to buy and sell items, but you want to make sure to avoid the fraudsters that also lurk on the sites. To stay safe, always meet in person to exchange goods for cash and never wire money in advance, which is how much of the fraud takes place. And of course, meet in a public place and bring a friend along for added protection.
Author: Gabriel Ofori Yeboah
Fund Manager, Investor, Broker, FX Trader, Consultant–(Investment, Financial Analyst, Banking) and CEO & FOUNDER–GOY FINANCIAL SOLUTIONS
Email: gabbynanaoforiyeboah@gmail.com Tel: 0246751535
