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7 Critical Tactics to Recover from Financial Setbacks in 2022

17 May, 2022
  • Written By: Mimi Anane-Appiah

We are a few months into the year and you will agree with me that 2022 has been quite eventful. The year-on-year inflation rate jumped to 19.4% in March from 15.7% in the previous month. Significant rises in prices of goods and services have forced many to relook at the personal finances. Whether you are one of them or not, every day present an opportunity to catch up on your personal finances. Here are some basic tips you can consider to improve your financial situation.

I. Set Financial Goals

This is a good time to set some financial goals. Ideally, you should develop long- term, medium and short term goals financial goals that align with your values and objectives. This provides a roadmap for making financial decisions and allocating resources more efficiently. Does this sound like something you need especially in these times? What I love about this is that you get to focus on what important and get rid of unnecessary distractions.

II. Monetize those skills

It’s time to make some extra bucks. As long as your skills solve a problem and create value, people may be willing to pay for it. Stop looking down on what you have, it is time to launch out. The more income you have, the more resources you can allocate towards achieving your financial goals.

III. Budget, stay in control of your money and save

If you keep wondering where your money went, maybe it is time to consider budgeting. A budget is simply a spending plan that ensures your money goes where you want it to go. Budgeting also help you live within your means, avoid debt as well as save and invest towards those future goals and expenses.

IV. Automate it

Do you keep forgetting to save or invest every month or as and when you earn an income? Do you often forget to make your insurance payment? Are you often tempted to use these monies for other purposes? Automate these payment. You can use a standing order, direct debit or other automated payment plans.

V. Plan for your future self, save towards your retirement

There is never a perfect time to save towards retirement because there so many other competing needs. Unfortunately, you can’t cheat nature, if God blesses you with long life, there will definitely be a point where you will need to depend solely on passive income. Planning ahead ensures that you have enough time for your consistent little efforts to cover something as big as retirement. If you already have a plan, review it, are you on track?

VI. Invest, Invest, Invest

Saving alone is not enough, thanks to inflation! To preserve the purchasing power of your money as well as create wealth, it is important to invest. There a wide range of investment opportunities available. Whether it is starting a business, investing in mutual funds, stock or bonds or it is buying cryptocurrencies, ensure that your money is doing the hard work. Remember, that your investment choice should take into consideration your objectives, risk appetite and time horizon. Talk to an expert for assistance. If you are not new to investing, review your investment plan. Does it meet expectations? Is there a need to expand or change your investment avenues?

VII. Manage life’s uncertainties, protect yourself and your loved ones

It would have been great if life was smooth sailing but it is not. Certain occurrences and events which you may have no control over can derail your progress. It is important to protect yourself from potential loses and ensure that your dependent don’t struggle financially if the unexpected happens. Get yourself the RIGHT and sufficient insurance coverage. Let the potential financial loss be someone else’s problem.

I hope these 7 tips help improve your financial situation. You don’t need to have it all figured out at once. Take some baby steps and increase your strides as you go.

 

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

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