Shanna Kaye Wright Vaughn, Lead – Youth and Education Programmes at the JN Foundation, says continuous learning can serve as a catalyst for financial growth and empowerment. Devoting just 10 minutes per day to educate oneself on personal finance topics, she advises, could yield substantial dividends in knowledge accumulation and one’s financial freedom.
“Seeking guidance from reputable financial professionals or sources enhances financial literacy and equips individuals with the tools needed to navigate complex financial landscapes effectively,” she informed.
Mrs. Wright Vaughn’s advice comes as the month of April is observed internationally as Financial Literacy Month.
Some of these educational resources include reliable financial blogs and financial news in newspapers, on radio/tv (local & international).
She says incorporating education, along with other strategic activities, into one’s daily financial routine, can empower people to take control of their financial destinies.
Mastering Budgeting
“By embracing prudent budgeting, diligent saving, savvy spending, responsible debt management, and continuous learning, individuals can pave the way towards long-term financial success and security,” she said.
Mrs Wright Vaughn said budgeting is the cornerstone of effective financial planning. By meticulously tracking income and expenses, she said, individuals can gain a clear understanding of their financial standing.
Prioritising Savings
“Allocating specific amounts for necessities, savings, and flexible spending categories helps maintain financial discipline. Leveraging budgeting tools or apps further streamlines the process, ensuring organisation and efficiency,” she explained.
The JN Foundation lead on youth and education programmes said that saving then takes centre stage in securing a stable financial future. She said by establishing both short-term and long-term savings goals, this cultivates financial discipline and resilience.
She recommended automating savings through recurring transfers to separate accounts, which she says will facilitate consistency and eliminate the temptation to spend impulsively. Prioritising savings before allocating funds for flexible expenses reinforces the importance of financial security, she informed.
Smart Spending
“Smart spending practices play a pivotal role in maximising financial resources. Distinguishing between needs and wants enables individuals to make informed purchasing decisions. By actively seeking out the best deals and discounts, individuals can stretch their dollars further,” she advised.
Moving on to spending, Mrs Wright Vaughn said that implementing a waiting period before making non-essential purchases mitigates impulse buying tendencies and promotes mindful spending habits.
Managing Debt
And, finally, to manage debt, persons should consider developing a repayment plan prioritising high-interest debts. This facilitates progress towards financial freedom, she said.
“Exploring options such as debt consolidation or negotiating lower interest rates with creditors can expedite debt repayment. Adhering to responsible credit usage practices and refraining from accruing new debt unnecessarily are fundamental principles in achieving financial stability,” she recommended.
