Almost everyone has experienced the dreaded feeling when they go broke a few weeks after receiving their salaries.
The reason for feeling this way is simple, says Nana Dwemoh Benneh, Head, Personal and Business Banking, Stanbic Bank.
This feeling, is as a result of our inability to thoroughly track our expenses.
“The plain truth is that there are very few of us who really know how much we spend every day and what exactly we spend our money on,” Nana Benneh said.
“With the current economic hardship, budgeting is essential for financial security and should not be ignored.”
The banker said budgeting is also a great opportunity for identifying where to save money. For example, checking how much your car is insured for can save money. If your car is a few years old, you may be paying a premium based on its value when it was new. Check the car’s present value. It could be a lot lower and mean a lower premium- it’s a simple way to stretch a budget.
“People who control their money, control their lives,” he stressed. “In the long-term, they also avoid the worries caused by overspending.”
Though making an initial budget may take time, Nana Benneh advised that keeping it going and making changes, is considerably easier. He also shared some key rules of budgeting:
“Most importantly, the budget must be realistic, he said. “It’s really no use to draw up a budget that doesn’t meet your objectives. Know where you are today and what your present situation is. Set your goals and decide where you want to be in the future. Also, be disciplined and stick to your goals as closely as possible.”
The last rule, he said, is to ensure that you keep up to date and monitor your investments. If necessary, consult a financial professional and get help in achieving a balanced portfolio that avoids “swings” in the market and preserves the value of your investment portfolio.
The result of your commitment now could be a lifetime of financial fitness and a lifestyle that doesn’t ever need to be compromised, he added.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.
