Awakening Africa Magazine


10 Tips to Help You Master the Art of Personal Finance in Africa

2 Mins read

During troubling economic times, many of us worry about the future and how it can affect our financial situation. You may not be able to influence the economy, but you can control your decisions. While it may seem daunting at first, we’re here with some savvy Africans’ saving hacks for handling your finances.

The Guide to Acing Personal Finance

1. Spend Less Than You Earn

You’ll never get ahead if you spend more than you make, regardless of how much or how little you are paid. Often, it’s simpler to spend less money than it is to make more, so making a few little sacrifices here and there can help you save money. And it’s not always necessary to make significant sacrifices.

2. Stick to a Budget

Budgeting is a crucial step to take while attempting to improve your financial situation. After all, without a budget, how can you know where your money is going? No matter whether you earn thousands or hundreds of thousands of dollars annually, you must create a budget.

3. Get Credit Card Debt Laid Off

The main impediment to improving one’s financial situation is credit card debt. When we whip those tiny bits of plastic out to pay for a transaction, big or small, it’s so simple to forget that we’re actually dealing with real money.

4. Save regularly

Directly deposit a portion of your paycheck into your savings account, or set up a monthly automatic transfer from your checking account to your savings account. In a South African Budget Insurance poll, 47% of participants stated they were putting money away for eventualities.

5. Make a Retirement Plan Contribution

If you have the means to do so, you should think about contributing to your employer’s retirement plan (or other employer-sponsored retirement savings plan). With retirement plans, it’s common for your employer to match your contributions up to a particular percentage.

Pensions reduce the poverty gap ratio by 13%  in South Africa and increase income by 5%.

6. Maximize Your Employee Benefits

Benefits provided by employers, such as a retirement plan, flexible spending accounts, health, and dental insurance, etc., are quite expensive. More than 80% of companies in sub-Saharan Africa offer their workers some kind of medical care or employee benefits. Make sure you’re making the most of yours and utilizing the ones that can help you save money by lowering your taxes or out-of-pocket costs.

7. Evaluate Your Insurance Plans

The eighth-largest in the world and worth roughly $68 billion  in terms of GWP, Africa’s insurance market is expected to grow in the coming years. Too many people are persuaded to purchase life and disability insurance at excessively high prices, whether it is by including these protections in vehicle loans, purchasing whole-life insurance plans when term-life insurance makes more sense, or purchasing life insurance when you have no dependents.

8. Keep Accurate Records

You probably aren’t claiming all of your permitted income tax deductions and credits if you’re not cautious about maintaining comprehensive records. Create a plan today and stick with it all year. It’s simpler than rushing to locate everything at tax time, just to overlook stuff that may have resulted in financial savings.

9. Avoid Splurging On Periodic Purchases

Spending a lot of money on recurring expenses like presents and vacations should be avoided. While spending money may make you feel good at the time, you could wish you had it afterward.

10. Try To Cut Your Energy Costs.

African nations are strongly dedicated to increasing energy efficiency and effectively utilizing demand-side management for Africa’s sustainable development. When not in use, turn off the lights and the appliances. Invest in energy-saving light bulbs. When possible, switch to a sweater or a fan instead of turning on the air conditioning or heating.

How did you score on the last checklist? Think about making a resolution to do better if you’re not completing at least six of the ten. Set a goal for incorporating all 10 into your lifestyle by picking one at a time.

Related posts
UncategorizedWorld News

Uganda Moves To Outlaw The Trade In Human Organs

2 Mins read
Uganda health ministry has presented a bill pertaining to illegal organ donation and the regulation of safe organ transplantation to the parliament….

Paris: 37 personnes interpellées après des heurts en marge du concert de Fally Ipupa

1 Mins read
La préfecture de Paris évoque des “exactions inadmissibles dans le secteur de Bercy en marge du concert d’un artiste congolais. La gare…

Gianni Bubu

1 Mins read
Originaire de la République démocratique du Congo et résidant au Texas aux USA, Gianni Bubu Bwaba est le fondateur et PDG de…
Want to be notified when we make any update ?
Subscribe to our newsletter

By submitting this form, you are consenting to receive marketing emails from: Awakening Africa, 3210 Belt Line Rd, Dallas, TX, 75001. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Leave a Reply

Your email address will not be published. Required fields are marked *

Culture & art

How to Learn African Dance as a Group for Your Wedding (or a Friend’s Wedding)