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2022 was an unusually difficult year for personal, national and global financial management.
Although things may have been bumpy, regardless of what is happening in the world’s economies, you need to protect your finances and preserve your wealth.
Personal finance puts you in charge of your financial life and gives you the freedom to achieve your goals. However, it is important to eliminate loopholes and strengthen your cash flow.
Here are a few things that can help you effectively clean up your financial life as we approach the remaining 4 months of the year and ultimately the upcoming new year.
Career assessment is an exercise to consider before the new year
If you work in the employee quadrant, which means you have a job, according to Robert Kiyosaki’s cash flow quadrant, it might be a good time to beef up your resume.
You want to make sure you are on a good career path and can generate income both in and out of season.
Do you have marketable and transferable skills and how easily can you change?
Consider adding another line of income
An asset is a resource that a person owns that has the ability to provide economic value. Examples of assets are investments and property, and although your income may not be classified as a traditional asset, it is also a form of asset.
Learn new skills, evaluate existing ones and think about how you can monetize some of them.
Collaborate on your way to get more revenue
Creating systems by using the time, skills or cooperation of other people is a form of business.
The world continues to witness win-win alliances across sectors and continents at phenomenal rates.
Who can you do business with and what can you do with them? Who can you serve together? What are the conditions?
Also Read: Halima Ibrahim Aba – Associate Vice President/SA to CIO at African Finance Corporation
Cash flow management is important
Cost management is where major spring cleaning needs to be done.
Benjamin Franklin said, “A small leak will sink a large ship.” Small purchases don’t have to send you into financial ruin. Problems start when they become regular and unimportant.
Don’t be a miser, but instead don’t be a spendthrift.
To create wealth, your income must always exceed your expenses per month, and you must learn to put the excess into savings or investments (such as assets).
To maintain wealth, your assets must always be more than your liabilities.
Identify the things that are needed and prioritize them. Don’t burn your money unnecessarily. Buying now and paying later is not always in your best interest.
Elections
Carefully weigh your financial options. Learn to negotiate better and consider your choices. Identify leaks and bleeds and take appropriate action when necessary.
When you feel pressured to make a purchase, apply the 24-hour rule, that is, give yourself 24 hours before making the purchase and see if you feel the same way 24 hours later.
For capital expenditure, weigh your options and see if you really need to make this purchase.
Satisfaction is key
This is where the importance of dealing with FOMO (Fear of Missing Out) comes in.
There will always be temptations and the “shiny object syndrome” will continue to plague the world. When others flaunt their possessions online, please remember your financial picture at the time and most importantly, what your current income can afford.
Don’t borrow to shine. A popular pidgin slang goes “She your shine, I shine with my shine”.
Count your blessings in the midst of it all and hope for better days ahead
Gratitude unlocks the door to more blessings. It helps you unleash your inner creative genius.
Sola Adesakin is a personal/business finance coach and Chartered Accountant with over 20 years of hands-on experience. She is passionate about helping people understand the make-manage-multiply money message, maximize their resources, achieve their financial milestones and build real wealth through the concept of financial planning.
She is a member of the Forbes Coaching Council as she continues to leverage global alliances and partnerships to expand the money message around the world.
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