By Josephine Agbonkhese

No one is perfect; that’s what makes us human. We can only strive to be better. This makes a new year an opportunity to make positive changes in your life and develop new financial habits.

Here are some tips to help you manage your finances in the new year as you kick-start 2025. Be ready— each of these goals requires a combination of planning, discipline, and smart financial decisions.

Create a Budget

Allocate a percentage towards essential expenses like rent, utilities, and groceries, allocate another towards non-essential expenses like entertainment, hobbies, and travel. Assign a portion for savings. Remember to also prioritise saving for emergencies, retirement, and debt repayment.

Live within your means

Taking on a new living expenses shouldn’t be whether you can afford it or not but whether you should take on such. Ask yourself: will it hinder my ability to save for other things, like buying a house instead of continuing to rent, or contributing more toward my retirement fund? In fact, aim to live slightly below your income; this will help you better control your expenses.

Save before spending

There’s always the temptation to treat ourselves first after paying our bills on payday. Don’t! Instead, have a savings target so you always transfer the appropriate funds to your savings accounts. By prioritising saving over spending, you won’t feel guilty about treating yourself to new clothes or a fancy dinner out with friends.

Track spending habits

Write down all of your expenses and purchases so you know where every naira is going. Some regular impulse purchases might be having a bigger impact on your finances than you think. In the coming year, consciously take advantage of online and mobile tools that allow you to sync your transactions or record them manually.

Build an emergency fund

If you haven’t been building an emergency fund, then you should begin one this coming year. Aim for 3-6 months’ worth of expenses by saving enough to cover essential expenses in case of unexpected events, such as job loss or medical emergencies. Remember to store your emergency fund in a readily accessible savings account.

Invest

We can’t sound this enough. Take advantage of wise investment opportunities. Remember to diversify your investments by spreading across different asset classes, such as stocks, bonds, and real estate