Financial planning is serious business since it involves the reality of an individual’s finances. Planning one’s finances to determine how an individual can meet their financial goals is typical of financial planning.


It’s very easy to make financial goals at the beginning of the year as part of a New Year’s Resolution; remember how you promised to save more last year?

However, putting financial resolutions to practise is not an easy feat. It’ll take hard work, determination, and dedication to see your financial plans through.

Ahead of 2020, here are five financial planning necessities to consider:


Track your present spending culture

As far back as you can, study your spending culture: what you spent on the most in 2019, how much of your finances went into impulse spending, etc.

Thankfully, a number of bank applications and online portals, offer e-bank statements to help examine exactly your monthly, weekly, and daily expenditure. Otherwise, visit your bank before they go on break for the holidays to obtain your statement.


Perhaps the biggest pro of this exercise is to be aware of spending mistakes, impulses and habits, and how you can do better in the new year.

Plan to save more

Know that one can never save enough. Slightly increase the percentage of your savings. The idea of slight increment to savings is to trick your spending habit of not losing out of much.

On the contrary, increasing your savings rates substantially could have you landing back to point zero.


So remember, increase savings rate little-by-little over a period of time until your periodic budget can handle your new savings culture. Make use of e-saving apps like CowryWise to test out this exercise.

Spend less

Yes, you read right. Spend less in 2020. After reviewing your spending culture, you’ll be abreast with the things, activities, and occasions when you spend the most.

Avoid these altogether or reduce your indulgement in those activities and spending habits.


Cut down on excesses. For instance, paying monthly for a 4-viewer Netflix account might seem bougie and even close to nothing in debit compared to a 2-screen account which is some thousands of naira cheaper.

But by cutting back on these kinds of expenses in the long run, the savings on expenditure can be baffling.

This painful process, if mastered will have you spending like a financially wise MVP.

Organize your finances


For this exercise, put together the basic necessary expenditures you’ll be making in the new year.

How much would your light, water, gas, airtime bills cost monthly and weekly? What about your house rent and debts you may have to pay?

All of these are examples of what financial organization helps you achieve.

Map out investment options

 A great Investment guru rightfully illustrated savings to building blocks and investments to the building itself. This means that savings are joined together to construct a building.

While it is of high priority, saving cannot make you rich. Wealthy people invest their savings. You should too.

As you make your financial plans this holiday, consider the kind investment options to secure your money in. research, inquire and choose the kind of investment which works for you.

Treasury bills, agriculture, forex, cryptocurrency, and gold are just a few examples of investment options.

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