03 Apr 10 Money Management Tips for Young Africans
Youths in Africa find that as they get older, their expenses accumulate. And if you are like most of the other 200 million plus young people on the continent, then you have a limited amount of income at your disposal.
Side hustling in order to supplement and diversify your income stream may be a great idea but is definitely not the only way to make your finite resources last in a world of infinite expenses.
10 Money Management Tips for Young Africans
Here are 10 money management tips to help you on your journey to financial comfort.
1. PLACE A VALUE ON MONEY
You need to understand what money is worth to properly appreciate it.
Consider this; money is what you exchange your time for. So when you purchase an item, learn to see the money spent as your time spent. Each purchase is a trade-off. Trade wisely.
2. BE HEALTH CONSCIOUS
Health is wealth. As a young adult with tons of energy and vigor, it’s easy to fall into the trap of thinking you are invincible. You are not! All that junk food, alcohol and sugar you are consuming coupled with little or no sleep you get on a daily will catch up with you eventually.
Eat healthy foods, make sure you exercise regularly and visit your doctor for checkups from time to time. It will improve your immune system and save you money in the long run.
3. BE SPARTAN
The Spartans of old were known for their minimalistic approach to possessions. Living with less is not everybody’s cup of tea but it is an option to be seriously considered. Avoid clutter and you’ll find you don’t need as much space as you thought.
The bigger the space, the more you tend to spend; the less clutter you have, the less space you need. Capische?!
4. LEARN TO GO DARK
Learn to unplug from the internet from time to time. Most of the time, we are influenced or pressured by what we see on the internet. This can be in the form of societal expectations, getting jealous of friends etc. When you ‘go dark’, it’s easier to focus on what really matters and also save some money you would otherwise have spent on something you saw on the internet.
5. BUY COMMON BRANDS
Buying common brands can save you a lot of money. There are many brands out there that are of the same quality as the popular high priced brands in the market. So experiment. Look out for these so called ‘common’ brands but don’t compromise on quality. You’ll be amazed how much your savings will grow.
6. PRACTICE DELAYED GRATIFICATION
Practice delayed gratification which simply means slowing down on giving yourself a treat. Sometimes you need to sleep on your decisions to buy something especially if you are an impulsive buyer, you will find you may not want it after all. Learn to be content with what you have and things like technological upgrades, wardrobe changes etc. until they are absolutely necessary.
7. AVOID COMPARISM
When managing money, the biggest mistake you can make is to be indulge in comparison. It is a never ending cycle when you let your spending habits to be impacted by the lifestyles of other people. Make sure you don’t deviate from your path trying to be like someone else. You will save yourself a lot of cash and headaches.
8. BUY IN STAGES
Amass possessions in stages. You don’t have to purchase everything at once. You do not have to own your own house just yet. Do what you can with what you have and build slowly. Many people today have run into debt because they did everything at once. Cut yourself some slack, start small and build in stages.
9. PLAN FOR THE FUTURE
Aging and death are inevitable. It is important to plan towards it early. Cut down on some habits, cultivate new ones, develop definite goals and work on set targets. Keeping the future in mind is a great way to develop an appreciation for the value of money which in turn will help you manage your financial resources better.
10 ASK FOR HELP
Don’t be ashamed or afraid to ask for help if your finances are taking a nosedive. Consult friends that you admire for their spending habits, consult websites like LearnVest that offer one-on-one financial planning for a small fee, use finance tracker apps to monitor your spending or get a friend or partner to keep you accountable.
It may seem like a drag and a lot of grief managing your money as a young African but the end results are worth it. Apart from developing more buoyant finances, you get to build self-discipline and also save for the rainy day. Start implementing these tips today.