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3 Important Money Lessons Every African Should Know

In order to effectively make use of money whether income or grants, there are certain things one needs to know about it. Some of them are:

1) Know what you can afford.

It is always better to be realistic and truthful to yourself about what you can afford. Although it is hard to do that daily. Really consider what you have and live a lifestyle according to your salary or income.

Live within your means. Mostly the problem arises when we are to make choice. The first lesson, know what you can afford and live within your means.

2) Make Savings a priority, not an afterthought.

Growing up, we realize we think more about using any little money we get on one thing or the other without actually considering saving part of what we get. Now, we are either thinking of buying a house, car, going to watch the latest movies among other spending.

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Amidst these plans, we do not prioritize a savings account. It is no surprise we don’t, because it is quite difficult to do, especially when we have a lot to spend on and less money . The solution is; always allocate certain percentages of all your incomes on the things you want to buy or acquire. Also, prioritize your needs or wants so that you allocate a higher percentage of your earnings to them, then set an amount to be saved.

3) Deal with debt, quickly.

Whenever we get into debt, we sometimes do not prioritize paying it off quickly, therefore, ending up costing ourselves hundreds or thousands more in interest. Have you realized it feels difficult to pay off debts than paying for what your want or need upfront? Even more when the payment of debt is delayed? Being in debt is never a great idea. However, if you are saddled with debt, deal with the debt as quickly as possible. That is the greatest strategy.

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Written by How Africa

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