Akinpelu Babatola Guest Writer, The Xpress Train
What’s so important about financial awareness, that it has a whole day set aside just for it? Is there really a need for you to observe Financial Awareness on the 14th of August?
Simple Answer? Yes.
It is a day set aside to remind business owners, individuals, and everyone in between, to be financially aware and responsible. Being financially aware makes you financially literate. It guides any and all financial decisions that you might make.
And this is why you need to celebrate financial awareness with us on the 14th. But unlike other holiday events, celebrating World Financial Awareness Day isn’t about throwing parties. No, we celebrate it in an entirely different way.
Here are 5 ways to celebrate financial awareness.
- Save: This might seem like a pretty obvious thing to do. But cultivating a habit of saving is a way to be financially responsible. It might seem like an impossible task, but slow and steady is the key here. You don’t have to save thousands right off the bat. Keep it small but make it regular. It could be daily, weekly, or monthly. No matter the time frame, keep it constant and regular.
- Cut unnecessary expenses: If you have subscriptions or reservations, this is the time to check them. Are they providing immediate value? Are they bringing in more money than they cost? If your answer is “NO”, then it is time to get rid of them. Anything that is draining your finances and not turning a profit needs to be reexamined or totally done away with.
- Budget: A budget is an excellent way to keep expenses in check. Without a budget, financial management becomes quite a hassle. Plan your expenses, allocate your savings, and don’t spend an unnecessary penny more. Unexpected spending should also be considered in your budget. Being prepared for emergencies is an excellent way of being financially aware and responsible.
- Rent don’t buy: If it is not absolutely necessary for your day to day operations, don’t own it, rent it. This will cut down massively on your expenses. Contract staff are sometimes cheaper than hired staff. Rented office space might end up cheaper than owning your own building. So if there’s an option to rent and it’s not a necessity, then rent it.
- Invest: This should be a no-brainer. Investments increase your cash flow. Buying stocks and owning shares are excellent ways to go about this. Another way to invest is to invest in yourself. Getting proper education on things necessary for your business is and should be considered an investment in the business. It might not be immediately visible like other investments, but getting the right education definitely pays off.
August 14 is specially set aside for financial awareness, but you aren’t restricted to just that day. Be financially responsible all year round and you’ll be shocked how much your financial lifestyle will improve.