It’s the last quarter of the year, a time when activities reach a fever pitch as we wind down to the end of the year. There’s a lot of shopping, traveling, partying, carnivals, just name it. As some of us may know first-hand, it is easy to arrive at the new year as a financial wreck without any proper planning. So, to help those that are yet to, then there’s no better time to assess your financial strength and plans than now, as the year draws to a close.
Here are 5 financial tips this fourth quarter to help you finish the year strong!
1. Review your financial goals for the year
It’s been a bumpy ride for many this year. Rising costs of fuel, food, transportation, and other basic living expenses mean some of us have had to make tough financial decisions. Now is a great time to set aside some time to review your financial goals for the rest of the year. Were you able to increase your earnings? Did you take out any loans to make ends meet? Were you able to save or invest as you had planned?
Empty your mind on a piece of paper or digital notepad. You may also want to review what you currently own including all investments and savings to have a full picture of your current financial position. This will come in handy as it helps establish a base from which to start your end-of-year financial planning. Remember that detty December is just a few weeks away.
2. Set a budget for end-of-the-year spending
Budget your end-of-year spending now.
There’s no nicer way to say it. Your Amazon wishlist will look super enticing on Black Friday, the wedding parties will line up like fuel queues during scarcity, your little niece will remind you of the dress you promised her and you may also have to show some love to relatives for Christmas.
October is an excellent time to plan yourself properly. Take time to plan your shopping for gifts, travel, events, and so on. And it’s okay, I know some of you may be thinking “but how can I even plan when I’m barely scraping by?”. Planning your spending will give you the opportunity to make the little you have to seem like a lot and you still get to spread enough love and laughter even with a limited budget.
3. Start shopping early
It’s no longer news that items increase in price during the holiday season. Nothing stops you from doing some early shopping and making the best of discounts and promos. If you can afford to, consider buying supplies, and food items like rice, and clothes now as there’s an almost 100% chance prices will go up any time from now, the words on the street suggest a bag of rice could be as high as N100,000 (rice, I’m looking at you)!
4. Start planning for the coming year
The new year begins as quickly as the last one ends. So, it won’t hurt to have broad financial goals for the coming year. Are you anticipating major life changes, such as the birth of a new child? Do you plan to relocate to a bigger apartment? Or are you considering starting a business? Set goals based on the anticipated changes.
5. Avoid debt traps
There is the possibility of dorime and unending parties pushing you to go above your budget and borrowing money this fourth quarter. There’s nothing wrong with having some fun, but don’t dig yourself into a financial hole without a plan of how to bounce back. Remember that January is coming, and it practically has 59 days.
Don’t get stuck in debt traps. When you take a loan, ensure you have a feasible repayment plan and stick to it. Be careful about loan sharks with unrealistic interest rates. Also, this is some life advice, try not to take loans just because of enjoyment, or other frivolous expenses.
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