With prices of everything going up all around us, this is the time to learn to be prudent. Every naira you earn now, should not only go very far, but must be fully accounted for. Here are the five habits of prudent people that you should imbibe in these tough economic times;
Have the end in mind
Prudent people do not just live for today, they also live for tomorrow. “If tomorrow comes” they know that they have to guide against their living standards falling significantly below their current levels. So they save and invest in a bid to generate a higher income in future to guide against rising cost of living and even the risk of losing their present source of income.
They think financial independence
Financial independence is always top on the minds of prudent people. This propels them to save in order to build a strong financial nest that they can depend on in future. So, they keep track of all incomes coming in today and what it is being spent on, in order to cut out any expense that can be avoided.
Pay themselves first
Prudent people pay themselves first when they get their income. Paying yourself first means investing in a mutual fund, stocks, bonds or even real estate, or any investment that has a good potential to deliver higher returns in future. That is what prudent people do first when they get their income.
Think before they spend
Prudent people think before they spend. It is not everything that you can afford that should be bought. A prudent person will always ask if an item is something he cannot really do without. Where he can do without or there are cheaper alternatives, a prudent person will choose the cheaper alternative, especially if it will serve the same purpose as the more expensive alternative
Impulse shopping is a no
Prudent people do not go on impulse shopping. They usually have a budget which acts as a guide to what they plan to spend each month and also guides their daily expenditure.
