No one ever exchanges a car for stone, you have to use Money! Bills! Cash! If you want a car, you exchange its worth in cash to show that you find it valuable. Nevertheless, the value of money would be greatly undermined without addressing its management. For example, because you value a car does not mean you should purchase one right away, you would probably need some smart credit-debit strategies to prioritize your purchase decision.
Here are five Smart Credit-Debit strategies that would help manage your funds as well as value it.
- Save before you spend: It doesn’t matter how irregular your income is, always keep track of it. Did an uncle somewhere dash you some money? Write it down. Did a cousin give you ‘something’ to buy “soft drink”, write it down before you start spending? After you have done that, budget a portion of it to be saved in a bank account or a piggy-bank. Typically, you might want to save at least 50% of whatever money comes into your hands.
- Don’t budget money you have not received: I will send you something little for airtime, without actually getting the money you have spent it all! What would happen if he or she never sends you ‘something’? If that money has not gotten inside your account or hands, please, don’t plan towards it. Don’t buy anything on credit because you think money is coming. Money anticipated is not the same as money in hand. Audio money and Audio spending is no good at all!
- Budget what you do have: The fastest way to guarantee reckless spending is by having money you do not plan for. It doesn’t matter if it’s as little as a thousand naira, plan every single kobo. Ask yourself what you spend the most money on each month and prepare towards them. Do not spend because you have the money; only spend on what you can afford! Plan your expenses. Remember to make sure every money that passes through you is well accounted for.
- Minimize going out with money you have not budgeted: be mindful of carrying large sums of money with you, especially if you are spendthrift. If you are the kind of person who comes back at the end of the day wondering what happened to the money you were carrying, place yourself on a daily limit. What if you set a daily financial cap that you will not spend beyond?
- Automate your savings: remember the first point? Always save before spending, to make this effective, ensure you automate your saving to avoid excuses or forgetfulness. Keep some money aside every day, week or every month whichever works for you. You can automate your savings with platforms like PiggyVest. Can you do N150 daily? It may seem small but multiply that number by 365 days and you have N54,750.
There you go! five credit-debit strategies to help you manage your money!