It’s almost the end of the first month of the new year. I hope the year has been good for you so far, and I hope it only gets better.
Kickstarting a new year right can be very fundamental in getting into the right headspace and mood for the year. So today, I want to talk about personal finance lessons you can imbibe this new year.
- Income isn’t everything
At a certain point, no matter how much you make, it might not make a difference in terms of savings and investment if you don’t actively combat lifestyle creep. Lifestyle creep is a situation where your expenses increase as your income increases. This means that you might be in the same place in terms of savings and investments for a long time without making any positive change.
So while you strive to increase your income, start learning how to live within your means and get used to living like that.
- Diversify your income
Getting income from one source can be tricky especially in today’s economy. Finding little ways to diversify would help a long way to give you peace of mind and security.
- Invest in yourself
One of the greatest things you can do in your financial journey is to invest in yourself. This is both professionally and personally. Read books, take courses, learn a new skill, do anything to ensure that you are better today than you were yesterday.
- Stop buying things you don’t need
We might not realize it, but a large percentage of our expenses might be on things we don’t actually need. Things that don’t really bring joy or help us move closer to our goals. Finding out what those things are and removing them, would go a long way in curbing your excesses. This then leads to the next point.
- Track the important things
It’s nearly impossible to know where your money goes if it isn’t tracked. Take a month and stick with it for that month to track what exactly you spend your money on. This would help inform your decisions on where to cut off unnecessary expenses. 6. Read 1 personal finance book per year As part of investing in yourself, take out some time to read at least one personal finance book each year starting this year.
This would just keep your mind in tune with your financial goals and maybe give some insight on how to better reach your goals
These are just some of the things that can be implemented this new year to help level up your financial standing.
Thank you for reading and have a great day!