It is never too late to do a smart thing, and when it comes to finances, you can be sure that it is never too late to make smart financial choices.

It is May already. Do you think that you have already made bad decisions in the first 4 months of the year?

Well, it is not irredeemable. You still have 7 months to turn the tide in your financial story.

We are rooting for you, and that is why we have put together a list of top 12 smart financial habits you should cultivate in 2022.

Let us get started then:

1. Have a (Financial) Plan

Ever heard of the saying, “He who fails to plan, plans to fail”? This applies in all areas of life, including finances.

When it comes to your financial future, you have to be intentional about it.

Make a financial plan that outlines the goals for your finances in 2022. Include the actions you need to take to achieve these goals. Be honest and practical.

Have both short-term and long-term financial goals and work towards them. It is easier to achieve long term goals when you break them into bits and achieve them one at a time.

2. Start Building An Emergency Fund

Emergencies are sudden and unexpected, and sometimes, they come with a lot of financial demands. Inability to meet emergency situations can have an impact on a person for the rest of their life. So one of the smartest decisions you can ever make will be to have an emergency fund.

No one prays for a car accident, a fire outbreak or an unexpected job loss, but these things could happen. Always be prepared for these eventualities. Start with little, then go on from there.

Some financial apps (like Kuda, Mobills, etc.) can even help you with this.

3. Plant Investment Seeds

If you want your finances to skyrocket, then you can not ignore one thing – investments. Investing your money can increase your income.

These days, you do not need tons of money before you start investing. You can learn as you go. You may get a few scrapes along the way, but you’ll be fine.

4. Shop Smart

When people hear about second-hand products, all they can think of is an old beat up car, or ‘okrika’ clothes. But no, ‘second-hand’ isn’t equal to ‘old and jaded’. In fact, many clothes from boutiques were laundered second hand clothes.

Also, did you know you could save up to 40% off retail prices when you buy second-hand products? You can save a lot of money on items such as electronics, jewelry, and clothing.

Clearance racks are not the leprosy unit of a store. Stop avoiding them!

5. Invest in Your Health

There is a popular saying that ‘health is wealth’. It is very true. Living healthy will save you a good deal of money. It is far cheaper to live healthy than to treat illnesses and ailments. Poor health can even cost you your job and send your finances into a downward spiral.

Exercise regularly. Get fruits and vegetables. Rest appropriately, and take time out to enjoy with your family and friends.

Give your body a proper maintenance. Take regular visits to doctors and dentists, and follow their health advice.

6. Flee From Window Shopping

Window shopping, aka browsing, is the act of going through or examining a store’s merchandise as a form of leisure or external search behaviour. A person who is window shopping has no current intent to buy anything. They may not even have the money to purchase the products. They only ‘feed their eyes’.

But the problem with this ‘feed the eyes’ mode of shopping is that it can lead you to see items that you do not need, but want. And when you have the means, you end up spending on those items because they were already on your mind.

Window shopping leads to impulsive shopping. At the end of the day, you may find that you have spent all your money on things that you never even needed.

7. Get Insurance

It’s safe to have the right insurance. Without insurance, a person may have to foot major bills out of their own pockets.

If you are adequately insured, you can protect your income and assets. Ensure that you make appropriate consultations before you pick an insurance policy.

8. Review Your Bank Statements

“Who does that?” You may ask. Well, these days, bank account fraud is becoming more rampant, therefore it is in your best interest to review your bank statement regularly.

That way, you can detect unauthorised transactions quickly. You will ensure that nothing slips through. If you are diligent, reviewing your bank statement will help you realise any negative spending habits you might have.

9. Track Your Expenses

You should have a journal or register where you record your expenses. This will keep you from spending money that hurts your account.

There are various financial apps that can help you track your finances and make recommendations on what spending habits to adopt.

10. Pay Yourself First

This is one way to save money. How does this work?

You pay yourself by saving money before you spend any money. It means save first and spend afterwards. This is an essential money habit to cultivate. It gets you to put your financial goals first, and then spend later.

Set aside a percentage of the amount you want to spend for savings. Doing this will ensure that you have something left after you have done all your expenses.

11. Offset Debts and Make Payments Early

When it comes to paying bills, the temptation to do it later is real. It’s easy to say, “I’ll pay it later”.

Apart from the embarrassment that indebtedness can cause, paying bills late can make you forget them, and may attract penalty fees for lateness in certain situations.

Don’t wait till you’re in a fix before you pay your bills. You may even pay up before the bills are due. Do yourself a favour, pay your bills immediately you can.

12. Get Rid of Unnecessary Expenses

Obesity kills!

This is also true with finances. Excess fat on your finances will kill it.

Trim the fat. Cut off unnecessary financial obligations. It will save you money. Cancel certain subscriptions, get rid of cable, reduce your electricity and water bills. Don’t waste, and stop overspending.

Don’t indulge in little treats that cost you a lot. Treats aren’t bad, but limit the number you give yourself. When you save these small expenses and add them up, you have a good amount to do something really productive for yourself, like going on a vacation or paying up a large financial debt.

Final Thoughts

If you put these actions in place, you’ll be able to navigate your finances. They will also help you manage money better and bring you into the future that you see financially.

Want to take your financial future into your own hands?

Don’t delay. Get started today.