The year is cruising along pretty fast and it’s important to double down on the things that truly matter to you and one of such things is your money and how you intend to spend it this month.
As you already know, the financial decisions you make today and work towards will strongly impact on your financial goals. In line with this, here are a few smart money moves designed to take you closer to your financial goals. Let’s have a look.
Trade In Your Car
If you own a car that spends more time in the mechanic’s workshop than it does on the road, then this would be a good time to trade it in for a less problematic vehicle. This is important because one of the biggest problems with cars in bad condition is that over a period of time, you will end up spending a chunk of your income struggling to keep the car on the road. Over time, this has the potential to leave a hole in your pocket.
You definitely don’t want to carry such a headache and liability into a brand new year. There are car dealers and brands within the automobile space that can help you pull off a swap or trade in of your vehicle.
Pay Off Your Debts and Loans
If you are currently repaying a loan, it would work in your favour long term to honour your repayment agreement and schedule because the last thing you want is getting chased around by those you borrowed money from.
The New Year celebrations are just around the corner and what better way to enjoy it than to ensure that your credit record and credit score are in good standing to avoid getting stranded when you urgently need a helping hand to get you out of a sticky situation.
Don’t Be Caught Unprepared
If you are a parent for instance, then you already know that January comes with the responsibility of ensuring that the tuition of your kids are settled. In a situation where you do not have all the money to pay their tuition, you can reach out to the school with a proposal to settle the payment over 2 or 3 months.
If you have had your children in the school for some time, this is more likely to work in your favour as opposed to if your child happens to be a new student. In essence, make concrete plans towards your financial obligations and don’t put yourself in a vulnerable or embarrassing situation.
Set Something Aside For Rainy Days
One constant thing about rainy days is that they always come regardless of how much you earn. The general rule for rainy days is to have nothing less than 3 to 6 months of living expenses set aside strictly for this purpose.
Please note that this is not the money you should be channeling towards your investments; especially those that come with a considerable amount of risk. Rather, the money should be set aside in a zero risk bank account.
Don’t Get Carried Away
December, by default, is one of those months where you have a stronger tendency to get carried away by the Christmas and New Year buzz around you. In other words, it is quite easy to lose focus of the reality of your finances and this is because there is always so much happening around this time of the year.
During the Christmas and New Year holiday season, one thing that’s incredibly easy to do is to overspend. The main reason for this is tied to the peculiarities of the period. It is, after all, the festive season. However, you need to keep a trained eye on your budget.
Respect Traffic Rules and Other Road Users
The last thing you want is to find yourself spending your hard earned money paying fines after breaking traffic rules. If you take things for granted, government agencies in charge of keeping the roads safe will not arrest you for violating traffic laws.
If you must drive, then ensure that your driver’s license is valid. Remember to check all your vehicle documents and renew the ones that need to be renewed. Don’t take anything for granted because it could come back to haunt you financially. Here are 80 traffic offences in Lagos and their penalties.
Final Thoughts on Smart Money Moves to Make Before The Month Ends
To avoid overspending, you need to sit yourself down and come up with a list of things that you need as well as a separate list of things that you want.
When you have this list down in black and white, you then proceed to prioritise the first list, which contains the things that you need whilst making financial projections for how you intend to manage your finances till your next paycheck comes in.