Smart money suggestions for the following year

2021 was quite a difficult year, the year was proceeded by nearly a whole year of lockdown which drastically affected our economy. 

The economy never really recovered from the lockdown, businesses were affected, jobs were lost. Planning for emergencies, saved some financially while those who didn’t plan were dealt a major blow. 

 A major lesson had to be learned from 2021, the lesson being that help is always around, It is for us to be able to access it and use it. Due to the financial crisis, the government provided a range of financial packages to keep businesses running. 

Financial institutions also helped by providing a range of financial products such as loans with little interest rates to keep businesses running. An example of this is loans like speedy cash which can be accessed on fitmymoney.com.

During the crisis, somewhere on top of their game by making smart money moves while others suffered due to their mistakes. So a major question lurking in our mind should be:

How to be smart with money? 

Being financially enlightened is an important factor in creating wealth. Wealthy people are known to make smart money moves that help in keeping their wealth. 

Here a ways to be smart with money:

Plan your finances

If you want to be smart with your money, you must know what you want to achieve with it. Your financial goal should be penned down and well planned, have a view of your annual income is and what is your net worth this can make you have a grip on your finances. 

Invest

At the end of each payday, after the money has been apportioned to everything, small cash would be left, this cash can either be spent or invested. Wealth can only be created by smart investment, a question most people ask is that I don’t have a huge amount to invest? 

We do not need a huge amount to start investing, we simply need to learn and carefully analyze smart investment options in order to take full advantage of them.

Learn to save

Saving is a habit that must be imbibed in ourselves, when we are earning huge amounts we tend to spend a lot in increasing our lifestyle but if we could save any spare cash as a means of clearing our Student Loan, personal loans, mortgages, keeping an emergency fund or operating an investment account, you would get how productive saving could be. 

Seek financial advice

Most of the time, people refuse financial advice, this decision tends to do more harm than good. A report shows that Financial illiteracy costs Americans $415 billion in 2020 alone. We can seek financial advice from financial institutions on how to manage our finances. 

Educate yourself on finance

A major difference between the wealthy and other people is the availability of financial education. Financial education has been a smart money secret of the wealthy since time passed. Financial education enables us to evaluate the financial system and how to take complete advantage of the system in our favor. 

Risk-taking is not always the smart move

As the popular saying goes “Risk leads to greatness”. Risk-taking is an important decision we must take care of and put all the factors into consideration. We should not just quit a good-paying job in order to start a sole business full time, without putting into consideration the ability for that business to fail. 

Take time to think after major life events

After some life events like divorce, losing a loved one, break up, a new job e.t.c, we must not be in haste to make major changes. We must think and put all the factors into consideration before making any big decision. Major events in people’s life can either bring joy or sadness, under both circumstances, people tend to lose their rational thinking. 

Build an emergency fund

Due to the uncertainty of the following year, the way the economy has been moving, and the increase in unemployment, we must always expect the worst, to stay in the situation. We should always keep some spare cash for any emergency situations. This is harder said than done but this is a habit we should try as much as possible to imbibe into ourselves. 

Fix mistakes on your credit report

A recent study shows that out of every 5 Americans, 1 has a mistake on his credit report.  According to Federal Trade Commission, a mistake on your credit report would cost you more money on loans and debt. Paying more on debt and loans reduces the amount and our ability to save up for emergency situations. If you find a mistake on your credit report, file a complaint seeking its correction. 

Why it is important to be smart with money

The financial crunch doesn’t seem to be ending any time soon, hence the need to be smart with money. The smart money concept entails us being on top of our finances, controlling it to a major extent. 

Our finances dictate the way we live our life, we must be smart with money in order to keep our finances together, we must not spend for the fun of spending but only when totally necessary. 

The smart money concept entails you planning all your finances to the last, this helps us control the way we spend money and increases the portion of our finance that goes into saving. Smart money plans entail taking full advantage of government financial packages like social security that are available. 

A major secret of being smart with money is saving for rainy days, if this is not done prudently, it can be catastrophic for an individual. 

The smart money concept also requires us to be able to access smart money loans. Loans that have low-interest rates. 

In the next year, we must be able to stay on top of finances and a major way of doing that is by making important smart money moves and adhering to it. 

28/02/2022