I did a financial check-up. Try yours...

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I started the year by setting a proper foundation for the year. This has also reduced my activities on the chain for a few days now. I am just trying to set a proper foundation for everything I will involve this year because I have so many things to put my eyes on.

We often go to the hospital for a general check-up to ensure our system functions properly. But we don’t treat our finance like that. Someone might say, does finance breathe? Okay, throw 80% of your money on fire and you will know the "breathe" that holds your life.

Well, this is all about knowing how well you manage your money and where you need to fix. If you don’t give your finance a proper checkup, you may spend outside of your plans.

Improving your financial health

  • Secure Your Assets

It is better to be broke and stay broke than to be financially stable than later go broke. When your finance seems more stable, ensure you have a contingency plan. Disability and life insurance serve different purposes. Disability insurance gives you income and pays your bills when you are sick and life insurance takes care of your family when you are no more. Clearly understand your current state and stand right financially.

  • Update Your Budget

I can’t say for all countries, but for a country like Nigeria, a budget cannot be static. Commodities are more volatile than the crypto market on this side of the world. However, budget changes and therefore you should increase and decrease your spending in every of your budget so that they can fit in your current plans and priorities

  • Monitor Your Spending

Pests eat crops not the money in your card or bank. So people sit back after spending a lot of money to wonder how their money finished. Well, this is because you are not tracking every $ that leaves your pocket. Proper tracking will allow you to know where you are spending most of your $. I went for a meeting yesterday at an eatery and while I was waiting for my client to come; I ate some chickens; I got the first the taste was great, then I ordered 3 extra. I was with #25,000 and after the meeting; I ordered a ride and got back to my house; I had only #17,000 left. Well, it is not a big deal for me, but I never planned to spend #8,000 for the meeting.

  • Boost to Your Emergency Fund

This is an important plan for your financial check-up. I preach Margin Of Safety always. You must check your emergency funds always. Some experts suggest having 6 months of emergency funds, but you always stay better with 12 months. Many factors can keep you down for a long time and that is why it is good to always have a better margin.

  • Reduce Your Fixed Expenses

One of the biggest mistakes is defining comfort wrongly. A young man rented a 3 bedroom flat and called it comfort. Well, there could be a better comfort. The house will not bring in any income and he will have the rooms vacant. This is not bad depending on the income but he could get a smaller house with cheaper rent and save a lot of money. Cut away fixed fees that are not adding to your finance.

  • Check Your Progress

You might have different saving goals for different purposes and you will need to visit them every time you are doing your financial check-up. This will help you to know if you are still on track or not. Do you have to increase your savings to meet up or do you need to adjust your deadline? The purpose is to ensure you are financially stable.

Our health is also tied to our finance, and we have to always give the two proper checks. You don’t want to wake up tomorrow morning to see your $5 million as $500.

My name is @tykee (Balogun Michael), a software developer/content writer and the founder of Meshboc Limited. I use my content to share my opinions on tech, lifestyle, and finance.

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