The decisions you make in life are crucial, and that’s why making the right choices is essential to achieving the outcomes you desire in every area of your life. One particularly significant area where your decisions greatly influence your quality of life is your finances.
To live a happier life and secure a better, more stable future, we’ve compiled some key financial decisions you should start making today.
5 Financial Decisions to Start Making for a Better Future
1. Save for Retirement
The best time to start planning for retirement isn’t when you’re close to it—it’s now. You’re never too young to plan for your future. As the saying goes, he who fails to plan plans to fail. To avoid this becoming your story, you need to plan and prepare well.
Research shows that the ideal time to start saving for retirement is in your 20s. This is because, when it comes to saving, the earlier you begin, the more your money can grow.
Retirement should be the time to enjoy the fruits of your labour, but sadly, many people return to financial struggles due to inadequate preparation. That’s why it’s crucial to set aside money for your retirement now so that when the paycheck stops coming, you won’t find yourself stranded.
So, when is the best time to start saving for retirement?
As soon as you start making money!
The moment you land a job and have a steady income, open a Retirement Savings Account (RSA) and start saving for your future. Be consistent and disciplined with your contributions—it will pay off in the long run.
2. Protect Yourself with Insurance
It’s shocking that despite the numerous benefits of insurance, only 0.5% of Nigerians are insured. According to The African Economy Consortium, just 5% of Nigeria’s 208 million population had health insurance in 2022.
Life is unpredictable, and insurance offers a safety net to reduce financial losses when unexpected events occur. For instance, a car accident, a house fire, or a medical emergency can create significant financial burdens.
With insurance, these losses are covered, allowing you to recover without being financially crippled.
3. Avoid Debt as Much as Possible
Debt is dangerous. Not only does it hinder your financial progress, but it also takes a toll on your mental and emotional well-being.
Moreover, being in debt isn’t just about repaying the borrowed amount; you also have to contend with interest, which can strain your finances further.
Debt weakens your ability to cover daily expenses and save for the future. So avoid debt like the plague whenever possible.
4. Set Financial Goals
Goal-setting is essential in every area of life, including your finances. Financial goals give you a clear direction and something to work toward.
When you define how you spend, where you spend, how much you save, and what you invest in, you become wiser with money.
Setting financial goals marks the beginning of a journey toward financial security—a future where you no longer have to worry about money.
5. Invest in Yourself
The best and most profitable investment you can ever make is in yourself. By reading books, taking courses, and developing new skills, you equip yourself with the knowledge and expertise needed to achieve financial freedom.
Self-investment also gives you a competitive edge in the job market. With in-demand skills, you can negotiate higher salaries and open doors to better opportunities.
Elevate yourself by continuously learning and growing—it’s an investment that always pays off.
By making these financial decisions now, you’re setting yourself up for a secure and fulfilling future. Start today, and your future self will thank you.
