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Doing a monthly review of your finances is a very important part of getting it right on your financial journey. It is great to do an annual review of your finances! However, making an intentional effort to do a review on a monthly basis is even more effective. Why?

1. Monthly reviews help you know where you are, what you have done previously and what direction you should be going in.

2. Doing a monthly review of your finances enables you to stay on track with your annual goals.

3. Doing monthly reviews give you a chance to intentionally spend time with your money (which many of us do not do!).

The question now is HOW? How do you conduct a monthly review of your finances?

Here's how:

Strategy One - Journal your experience in the previous month by answering the following questions:

• Did I hit my saving goals? 

• Did I stick with my budgeting plan?

• Did I repay my debts?

• Did I make any investments this month?

• How much income did I make this month?

• What lessons did I learn this month?

• What were my wins this month?

• What were my failures, losses or mistakes?

• What were my challenges?

• How do I feel about my progress this month?

Strategy Two - Do an SSC exercise

• START: Ask yourself, what should I be doing that I am not doing that I should start doing when it comes to my finances? 

• STOP: Ask yourself, what am I currently doing with my finances that I should stop doing if I must get my money right?

• CONTINUE: Ask yourself, what am I currently doing right with my finances that I should keep on doing?

One thing you must note is that the best way to conduct a thorough financial review is to be honest with yourself and ask yourself very pertinent questions that will cause you to think deeply and enable you to make clearer decisions in the coming days.

Your financial review should happen on the last day of the month or the first day of it. This is important because after your review comes goal setting for the new month.

Spend time with your money this year and you will be glad you did!

Love, light, and a sprinkle of money in-between.

Financial health has to do with the state of your finances and also has to do with whether or not you are equipped to handle emergencies and to make major life decisions without wondering about its impact on your bank account.

How to assess your financial health:

1. Know your net worth. This is a calculation of your assets and liabilities and the difference between the two (that is, assets minus liabilities). Your assets are what you own and your liabilities are what you owe.

2. Understand your cash flow. Where does money come from and where does it go to?

3. Know your fixed and variable expenses.

4. Know if you are in debt and how much debt you are in.

5. Review your savings and your emergency fund. Know how much you want to save and how much you have saved so far.

How to improve your financial health:

1. Set SMART short and long term financial goals. Your goals are to be SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT AND TIME-BOUND. Short term goals range from 1-3 years, mid-term goals range from 4-10 years, while long term goals range from 10 years and above.

2. Draw up a comprehensive financial plan that includes your expenses, your goals and aspirations, your plans for investing and for retirement as well.

3. Seek professional advice to help you with your financial management 

Financial health goes beyond how much is in your bank account. It encompasses a sense of security, readiness for the future and also freedom to live your best life without financial stress. 

Are you financially healthy?

Love, Light, and a Sprinkle of Money in-Between

According to a recent study conducted by Point Digital Finance, 64% of GenZ citizens (anyone born between 1997 and 2011) have agreed that personal finance concerns have a significant impact on their mental health. In other words, money matters dey stress them! 

This is true because of the challenges facing them; from managing debt, saving, earning enough to meet up with demands and even preparing for retirement. This therefore means that GenZs need financial literacy now more than ever. Here are some tips to manage financial stress:

1. Step back and organise your finances. Know your financial goals, your money personality, your money fears, your net worth (assets and liabilities) and your income streams. This will help you know where to adjust and make changes. 

2. Avoid comparison! Resist the urge to constantly compare your financial situation to others. Remember that personal finance is personal. Stay focused on your goals and journey.

3. Improve your money-making skills. By picking up and improving on your hard and soft skills, you are positioning yourself to increase your income. 

4. Get financial education. When you have better knowledge and understanding of your finances, your confidence levels will rise, you will make better decisions and you will be less stressed and worried.

5. Be open about your financial struggles. Be comfortable with having honest, open and transparent money conversations so that you can find help

Dear GenZ, Money does not have to stress you to the point of frustration. With the right steps and strategies, you can de-stress and get a hold of your finances. 

Please share this with other GenZs in your circle!

Love, Light, and a Sprinkle of Money in-Between

Many of us look back in hindsight and wish that we learned what we now know about money at an earlier age. Maybe we would be billionaires right now don't you think? It is therefore important that parents take very seriously their responsibility to teach their children about money early in life because it will ensure their success later in life. 

Here are 7 tips that will help you teach your kids about money:

1. Lead by example - Children learn from observation and so as a parent you must also be practicing good money habits such as saving, budgeting, and investing. Show them how to be responsible with money and it will make your teaching easier.

2. Save and set financial goals - Encourage your children to set saving goals. Teach them how to plan for things and not just to spend compulsively. Teach them about delayed gratification and the difference between needs and wants.

3. Introduce them to banking - Open bank accounts for your children and teach them about how a bank works and how to manage an account.

4. Involve them in financial decisions - If possible, involve your children in certain financial decisions at home. Discuss major purchases, involve them in budgeting and go shopping with them. Set saving challenges and save together. Get them involved.

5. Teach them about debt - teach them how to borrow responsibly (good debt) and how to identify and avoid bad debt. 

6. Encourage entrepreneurship - Give your children room to explore their interests and hobbies. Teach them about creating and managing a small business, teach them how to sell and how to deal with customers. When possible, pay them for services they offer to you.

7. Teach them how to give - Giving is part of financial education and teaching your children to give helps them cultivate a balanced financial life that is not just self-centered, but cares about others too. Teach them to allocate funds for charitable purposes and to prioritise their spending at all times. 

According to Claire Klassen, “Early financial education is crucial for breaking the cycle of poor financial decisions and increasing financial literacy.”

I hope this is helpful to you and your kids!

Love, light, and a sprinkle of money in-between.