10 THINGS TO DO DIFFERENTLY ABOUT YOUR MONEY THIS YEAR AS AN EMPLOYEE- PART 2.

As we continue through the new year, there are things we can do to help us handle our personal finances rightly. I posted Part 1 of this article here, in case you missed, you can find via this LINK:

Below is Part 2 of the article which includes the other things you can do differently about your money in 2023 as an Employee.

5. Emergency fund: We don’t know when we will get sick, we don’t know when we will have a major repair of our cars, we can’t tell if the jobs we have will remain in existence, and the same with us not knowing the next global pandemic. Everyone needs to put aside some money that is of easy reach when such circumstance happens, and it is recommended that this should be between 3 to 6 months’ worth of your monthly expenses. Start with say having a target of minimum of UGX 2,000,000 (USD 600) of the emergency funds and keep growing this say monthly. You can choose to have this in your bank account but there are other options like Unit trusts that can keep this money and reward you with interest.? Emergency funds are not an investment, and the number one goal is to help you remain liquid and be able to finance your unforeseen circumstances as they arise.

6.?Managing Debt: Because of the high costs of living, many have found themselves having a lot of debt in the previous year. Although some debt may be good, continuous borrowing for consumption isn’t good and could limit you from attaining your financial freedom given whatever you earn will be eaten up in paying back debt. Try to avoid debt that feeds your consumption this year and this can be achieved by living within your means and continuous generation of multiple income streams that bail out when financial needs arise. If you are to take a loan this year, let it be for an investment who returns exceed the interest on the loan.

7.?Insurance Policy: We live in a risky environment, and anything can happen in a minute including death. If you are a parent or someone with dependents like me, having a backup plan in terms of a life insurance policy would be good. You may also consider signing up for motor comprehensive insurance for your vehicles or getting education insurance policies for your dependents still in school.?Speak to your insurance service provider about the insurance policies. Some policies can also be used as mode of long-term saving and the insurance company will pay you your assured sum with interest at the end of the agreed period.

8.?Personal Development: Aspiring to make more money and grow wealth while you are not investing in yourself will just remain a dream. As an employee, you need to embrace personal development this year. Take on that professional course, upgrade either for masters or any other degree, sign up for mentorship, improve your skills, especially those that you use in your day-to-day work, read relevant books and blogs among other things. You attract more value in terms of income when people see extra value in you.

9.?Accountability Partner: You can achieve your financial goals alone but having an accountability partner would help you be more committed since you have another person watching and routinely checking on you how you are progressing. This person can be your spouse, friend, workmate, etc. It is for the same reason that people may choose to join saving groups where they save together. You also feel indebted when you share your financial goals with someone, and this will help push you more.

10.?Financial Literacy: Become passionate about learning about how money works.?This could be through reading financial books or watching and listening to videos or podcasts where information on money is shared including business news. You can sign up for a coaching and mentorship session with coaches like myself to help you craft a clear journey to your financial freedom. There are various resources across the internet to help you learn more about money and build your understanding about money. I recommend that before you invest in something, take time to learn more about that area for to make an informed decision.

11.?Bonus 1: Start preparing for your retirement or a time when you will not have that job if you have not. As an employee, you must appreciate the fact that you will not be employed forever. Visualize how your retirement life should look like, start saving and investing for this purpose.

12.?Bonus 2: Only for those married: Handle your finances as a couple: You got married and become one, your finances need to reflect the same. Plan your financial journey as a couple and be transparent about the financial decisions that you are making to each other. Find something that works for both of you say having a joint account or contributing an agreed percentage of your income to the family account.?

Did you find value in this article, share it with others who may be helped with this information and feel free to reach out for a coaching session on how to sort out your personal finances via here BOOK COACHING SESSION

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Coach Samuel Ibanda

Disclaimer (Views expressed here are my own)