For a lot of us, 2021 was a hot mess. We were not only surviving through a pandemic; grappling with loss, grief, depression, and every other negative emotion that was on-brand for last year, but we also had to set aside all our ‘New Year, New Me’ resolutions to deal with the bigger problem at hand – COVID-19. Personal goals, financial goals, career goals, Pinterest vision boards; none of that mattered in the grand scheme of things. Yet somehow, people recorded wins, promotions, new jobs, and even new babies. Others smashed all the goals they set for themselves at the beginning of the year. And the vast majority, well, we’re here. Now. That’s all that matters.
Regardless of our individual chaotic journeys through last year, we’re all in a new year. And although the pandemic is far from over, we must learn how to grow and blossom in the new normal. What this means is intentional living. For us to be intentional in all our decisions, plans, and thoughts. Most importantly, intentional in our financial decisions. After all, aren’t we all trying to go where the money resides?
The big question now is: How can my finances thrive even in a pandemic?
With these ten personal finance tips.
1. Articulate your goals
A vision can only be clear once it is set in stone (or paper in this case). Pick up a journal (no, not your notes app) and list out all your financial goals. The ones you want to achieve in the next three months and the ones you hope to achieve in the next ten years. Write them all out. Don’t be afraid to dream big. Do you want to buy a house for your mom in five years? Pen it down.
After you’ve exhausted all the goals your mind can think of, then you can start sorting them into short-term, medium-term, and long-term goals. Remember, your short-term goals are goals that can be achieved in fewer than two months, your medium-term goals may take from two months to three years to achieve, while your long term goals can take more than three years. Make sure to keep this in mind while sorting. Once your vision is clear and written on paper, then the planning can begin.
2. Have a plan
The most crucial step which determines whether or not your goals are achieved is having a working plan. If you have a clear idea of what you hope to accomplish in three months financially, that’s fantastic. Now, how do you plan to smash that goal? Plans give direction. Plans give daily purpose and above all, plans make you focus. Make some tea, sit in a quiet place, and brainstorm until you can draw up a good plan.
3. Diversify your income
I’m sorry darlings but unless you’re a Beverly Hills plastic surgeon, that one 9-5 job won’t cut it. You need multiple streams of income to cover all your monthly expenses, plus savings and investments. You may be great at your day job, but always be open to the possibilities of diverse income streams. It is going to be hectic. Diversifying your income means more money but also more work. But that work creates an opportunity for you to create passive income for yourself, which means more money and less work in the future. So sell your skills by starting a side hustle. Tutor elementary kids on the weekends. Sell your small handcrafts. Commission your digital paintings. People can and will pay top dollar for your skills. If you’re going to adopt any of these personal finance tips, it’s that you should never be afraid to venture outside of your straitjacketed 9-5.
4. Invest in your future
There’s a popular saying that goes, “you have to use money to get money.” And I think that is what investments are. At some point, your money has to start working for you. When you invest in real estate, you create an avenue for passive income. When you start saving towards a retirement fund, your money compounds interest. And when you invest in stocks, your money might as well be a Wall Street banker crunching the numbers for you. It’s never too early to invest – and thanks to the plethora of opportunities available now, nothing is too small to invest either. Start somewhere and you’ll get somewhere.
5. Live according to your means
The only person worth impressing is yourself. And yes, it’s good to wear nice things, treat yourself, take that holiday and all that good stuff. But always remember to treat yourself according to your means. The easiest route to financial ruin is by indulging in a lifestyle that you cannot afford. There’s nothing wrong if you can’t afford luxury items – one day you will, just not yet. Which is why you should work hard now so you can live that luxurious baby girl life sooner than ever. Live on a budget, be prudent with your spending. Cut your coat according to your cloth and learn discipline.
6. Feed your mind
You need to create a space with like-minded people. Discuss money with your girls; share investment tips in the group chat; listen to financial podcasts; and watch YouTubers who share money advice. Some of my favorite YouTube channels include Patricia Bright, Graham Stephen and CNBC Make It. Open your mind and feed it with the knowledge to keep yourself reminded of your goals and motivated towards achieving them. It’s also an opportunity for you to learn from people who are better and more experienced with money management and financial growth.
7. Invest in yourself
Self-improvement is critical to any form of growth. To increase your earning potential, you need to invest in yourself. Read books, register for a workshop, sign up to a free course online. People will pay you for what you can offer. And if you improve yourself, it automatically expands your earning power. Remember, the best investment is self-investment.
8. Audit your expenses every month
Having a tracking system can help you stay focused on your financial goals. It can be in the form of a spreadsheet like this one created by Bukola Ayodele of The Come Up or a budgeting app like Mint that helps you keep track of your monthly expenses. Feel free to experiment and find what works for you.
9. Insure
If I could scream this with a megaphone from the top of the Burj Khalifa and the whole world would hear me, I would. INSURE! Life is insanely fickle, hence why everyone needs insurance now more than ever. Health insurance (do I need to remind y’all of this?), life insurance, disability income insurance, car insurance – they’re all necessary. Insure according to the reach of your pocket but also prioritize. You’re not too young to insure. In fact, by your mere existence as a human being on planet earth, you’re subject to the unpredictability of life. So why should you not insure?
10. Give
This is not one of those “givers never lack” tropes. In fact, givers do lack. A lot, if I might add. The universe may not always reward your good-naturedness, and that sucks but learn to give because you want to help other people and not because of a ‘reward’. Make it a habit to give. Friends, family, strangers, charity organizations; create a habit of putting a smile on people’s faces. No matter the little amount of money you have to spare, just give. Someone somewhere is grateful for your tiny drop in the mighty ocean of kindness.
I hope we can take these ten personal finance tips towards saving money, increasing wealth and being more intentional with our coins this year. It’s super possible for your financial situation to still thrive even in a pandemic. Although this should never take precedence over your physical and mental well-being, it is equally important to start securing your future.
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Written By Naomi Ndifon
Illustarted by Francesca Mariama
