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How To Manage Money Effectively In Ghana For Successful Financial Life

How To Manage Money Effectively In Ghana

In this post, I will take you through how to manage money effectively towards achieving your financial goals. It’s actually everyone’s desire to get their money ladder higher with effective increment but this can only be real if you know how to manage your money well, it sounds like a tedious task to do but; hey! It’s very simple. Mismanaging your money is a serious threat to your personal finance but most people don’t even realize this fact, they’re the day to day decisions you take regarding your finances. People worry much about how to handle their money and make good use of it for the better life they really want to enjoy but rather forget that they are the managers of their money. Regardless of your financial status, if you want to make the most out of your money you should learn to be a good manager of your “personal economy”

Managing money involves the continuous processes of budgeting, investing, saving, spending and planning to impact your finance positively. Simply put, putting together all the financial capabilities of an individual towards achieving greater wealth. Successful people started managing their money and then acquired wealth!

Why Is Managing Money Relevant?

✔Managing your money helps you to gain better knowledge of where and how your money is spent. This allows you spend within your budget, and increases your savings due to restricted spending.

✔ Managing your money helps you achieve your financial goals through financial analysis and planning.

✔ Proper financial management secures your financial future.

✔ Managing your money increases your wealth  from just “having money to being wealthy”

✔ It helps you cut off debt and and rather enhances good credit score.

✔ You gain a lot of control over your personal finance.

How To Manage Money Effectively In Ghana

1. Analyze your finances: To get started on how to manage money, take time to analyze your financial situation. Get to know your monthly income and your expenses and how much you spend on groceries, recreation and dinner aside important bills such as rent and utility. Check and analyze the percentage of your expenditure on less important things and your savings. Dig into your current financial situation and determine whether you are happy with it or not.

2. Calculate your net worth: Proceed to  calculate your total asset and your total liability to get the current value of your net worth. This value will let you understand the impact of inflow and outflow of your income flow or better still, throws more light on how you utilize and handle your income on expenditure.

3. Set personal priorities: Now, you need to drive your focus on goals you deem as important and wish achieving them. List all your goals and prioritize them in order of importance by making and adjusting your goals and achievements. May be you want to get yourself a house, make investment or perhaps save for retirement, consider to make them a top priority goals to be achieved.

4. Make a budget to track your spending: In order to manage your money effectively, tracking your expenses is a key factor. You need to create a personal weekly, monthly or yearly budget plan of your income and expenditure. Budgeting allows you to control and track your expenses to avoid overspending. Creating a budget will greatly increase savings and investment through restricted spending.

5. Save more to invest: Getting the basics on how to manage money can’t be done without savings and investment. Make more savings towards investment, open a savings account, high yield savings account or certificate of deposit to enhance savings whiles you focus on long term investments. Long term investments will yield positive returns in future.

6. Start an emergency fund: To cover unforseen contingencies of life and make life easier for yourself in difficult times, you need to start an emergency savings fund to enable you make financial settlement in times of emergency such as hospital bills, death of a relative, medical bills, emergency car or house repairs and any other emergency situation you may encounter in future. It will allow you to pay for unexpected expenses without having to borrow or use the high interest rate credit cards.

7. Save towards retirement/retirement fund: Plan to make savings towards retirement. You might be young and energetic but getting a retirement fund is the best start to manage your money as the saying goes “make hay while the sun shines”. Never to let retirement take you by surprise without retirement fund, that can be disastrous. You can start social security fund which will be deducted directly from your income each month or a 407(k) account which is automatically deducted directly from your payroll each month.

8. Payoff any debt or loan before due time:  Avoid delay credit card and loan payment, make efforts to clear off your debts before the due time for a good credit score. Or better still, use credit cards below limit to avoid high indebtedness. One of the major factors that leads many to financial constraints and mismanagement is debt. So clearing your debt is a good way to manage your money effectively.

9. Track your financial progress: Finally, take stock of your finance to monitor your financial progress. With a progress report, you can assess and evaluate regular financial situation. Make assessment on your net worth, income, savings, investment and expenditure with comparisons of previous income flow. Evaluation progress made so far on your goals and achievements with budgeting adjustment.

Read more…

8 easy money saving tips to grow your bank account

How To Make Personal Monthly Budget To Control Expenses and Improve Your Savings Significantly

Financial Goals You Need to Achieve Before Age 40

Acquah Thomas Goodmanhttps://www.talkfinance24.com
I'm a writing enthusiast. I love to inform and educate people worldwide on personal finance. Educating people to attain their financial freedom is my major priority. Reach out to me personally on goodmanthomas8@gmail.com

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