5 major finance management skills you should possess in 2023

As you begin to note down valid Dos and Don’ts for 2023, having a personal financial management skill in the new year should be part of your resolutions. And so, learning the skills to possess a more financially secure life should be seen as paramount. The earlier you learn how money works and its managerial skills, the more confident you become. Here are five financial management skills you should possess in the coming year.

1. Investment:- What comes to your mind every time you hear the word investment being thrown around? Mine is action and profit. These two words are what investment is built on. Money is dedicated to purchase an asset which in turn accrues value in a given period. Be intentional about investments in 2023. Read books, and follow stock updates. Life is even made easier as there are apps that have made access to investment opportunities more realistic. Apps like Risevest, Cowrywise, Chippercash have investment and returns in their platforms with highly encouraging interest rates. I’d write another article strictly for the best investment apps in this region.
2. Savings: There are 4 main use of money, one of which is savings. The other three are; investing, spending and giving. Are you more of a saver than a spender? The benefits of savings cannot be overemphasized. Cultivate a habit of saving towards a target or for rainy days. Do you have an emergency savings wallet? There are apps that have made this much easier. Apps like Piggyvest, Cowrywise to name a few. With these applications you can be strategic and disciplined with your savings for that car, land, or bill.
3. Understanding cashflow: To understand cashflow is to simply understand the flowing in and out of your cash. It even helps you to manage spending and planning ahead because you have a knowledge of what comes in(revenue) and goes out(expense) of your purse.
4. Excel Usage: While understanding your personal financial goals, keep a record of your budgets, income, gifts, contributions, debits, investments etc. Proper record-keeping aids accurate analysis of cashflow and accountability.
5. Budgeting: Do you know one major importance of budgeting? It makes you wiser and prudent with money. You feel secure knowing exactly how much you need for each category till your next big paycheck. Let’s take this imaginary example, Mrs A. has no budget but heads to the mall to restock her kitchen for the month with #100,000. Mrs B also heads to the market to restock her kitchen for the month with same amount of money but with a budget list. Who do you think will feel more fulfilled having covered all necessary items needed with a specific amount? Budget minimises spending and impulse buying.

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