6 ways to make 2020 your best financial year
A lot of people wish for a lot of things to happen in 2020 but don’t even have a plan of achieving it
One major mistake that those who lack financial Intelligence has been making is expecting things to be done spontaneously without properly planning for it.
Luke 14:28-30 says something
It says –”Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, “This person began to build and wasn’t able to finish.”
If God was a magican like most of you are expecting him to be, this advise won’t be coming from the bible. He would have urged you to start the house and watch him complete it miraculously.
You see, the moment you let go of the miracle mentality when it comes to your finances, that’s the moment you will start taking charge of your life.
If you want your year 2020 to really be different from other years financially, then you have to follow through these six financial steps and thank me later
1. Create Extra Money Taps: If you do contract job, your priority should be to establish daily or weekly sources of income with income from the contracts.
If you have one businesses that produces income, your priority should be to create the 2nd and then 3rd one
If you are employee, your priority should be to create a source of income different from your job
If you want to make 2020 your best year as someone who’s still struggling financially, your priority shouldn’t be to entertain luxury, your priority should be to create another source of income with the income you currently have.
2. If you are young, take more risk: It would be slow and somewhat difficult to achieve your dreams if you avoid taking risk.
If you are within 18-40, this is the time you need to take more risk. The reason it’s best for that age bracket is because even if you fail, you still have enough time to pick up yourself and keep going.
The money I have made within two years I started taking risk, I wouldn’t have made it for 10 years of not taking risk.
From experience, I can tell you that risk taking has a way of bringing you closer quickly to your goals.
The bad thing is, it doesn’t go well all of the time so before you venture into any risky business, ascertain your risk appetite and carefully plan out ways of survival incase something goes wrong.
Why people get so hurt when their risky ventures goes bad is that they don’t have a plan B. A plan B is like a parachute that will help you not to fall flat to the ground when it happens.
3. Stay away from Bad Debt: There are good debt and there are bad ones. A bad debt in my own definition is the type that you have no definite plan of paying back. The one that you are depending on “hope” to pay back.
It has a way of putting you into bondage.
While a good debt is more like using other people’s money to run businessed. With this kind of debt, you have a well thought out plan of making yourself a fortune and paying back the loan without stress. Don’t borrow people’s money to go into a business you don’t fully understand. That’s foolish risk.
Don’t try to deceive yourself about this. You might think you are deceiving the person you want to borrow from by lying about how to pay back, the truth is, you are deceiving your own self. You will be the one to suffer the consequences. So be very honest when borrowing money so you don’t end up enslaving yourself.
4. Make your financial plans before hand: Whatever your money will go into in 2020 should be pre-planned. Ranging from school fees, housing, travels, food, car and whatever it is. Don’t go into 2020 with your usual spontaneous spending habit.
The truth is that, it will leave you in the same financial level at the end of the year and then you begin shouting 2021 is my year afresh.
If you are sending your kids to a particular school, make a plan on how to be paying the fees. If you are moving into a new apartment, make a plan on how to be paying the rent.
If you want to travel by 2020 either at the beginning, middle or end of the year, make a proper plan on how to cover up the expenses starting from now
If you want to Wed by December 2020, start now to make plans for it.
Also, Create a separate account for emergency. Emergency are unforseen circumstances that might take money away from us. Make plans for it so that when it happens, it doesn’t affect your savings, investments or businesses. E.g death of parent, pregnancy, sickness, etc.
5. Diversify your investment. In as much as a I run an Investment club, I still always advise people to diversify their investments.
It is a foolish financial decision to put all your eggs in one basket.
The truth is, unlike Zari Investment club that promises to take all risk from it’s investors, other investment platform do not give such opportunities so it’s best you don’t put all your life savings in one investment because you never know what will go wrong.
Diversify your investment so you don’t go back to square one when an investment goes wrong.
6. Make a daily, weekly and monthly Budget: I have been talking about making a budget almost on daily basis. One thing about me is that I don’t preach what I don’t practice. Ever since I started making a budget for my expenses, I have been able to keep track of my expenses. I can say that I know exactly where even my N100 is going to.
Make a budget to always save a part amount of your income every month
Make a budget of your food, transportation, data and every other thing.
If you can start this from the beginning of the year and follow through, you will be very proud of yourself at the end of the year.
2020 isn’t going to be different if you don’t make it to be.
To round up, don’t go trying to impress anyone by spending on things you can’t afford. Remember that there’s a big difference between having the money to buy a thing and being able to afford it.
Live only within your means in 2020, don’t spend on anything without pre-planning, while others are going for luxury, focus on creating multiple income stream and I will be glad to hear your testimony at end of the year.
Have you made plans already for 2020?
Which of the tips above are you adding to your plans?
What other tip do you think should be added to the list?
Please share with us at the comment section.