When I Learnt When Not To Spend
You don’t have to be an expert in personal finance or have a big investment portfolio to be
It is important to understand the basics of financial planning and discipline.
When to spend and when to save, when to invest and when too harvest.
In all, financial discipline is one of the sustainers of our business moguls we all know today.
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1. Make a plan.
It’s simple for you make a plan. Having a plan or a strict budget does not guarantee you financial security. Why? It’s still in PAPER.
Making is like catching bate for a fish, while applying the plan is like setting your hook into the river.
And as we all know, the wind must push it sideways as it chooses, but, it’s left for you direct the hook where you want it to be till you get what want. How enterpreneurs ruin their companies
That’s just the key in making a plan. As said above, catching a fish in the stream is all
about having a clear aim of what you need and the ability to stick to your need no matter how the wind tosses your hookrope away.
In financial education, we teach our students on creating a budget daily, weekly, monthly and so on.
So, in order to be in control of how you spend, you just have a clear plan and budget and also, the ability to stick with the plan till all have been accomplished.
2. You Need Self-Control: Paying With Cash might be best option.
Most of us grew up in a home where our parents are not bouyant to get all our needs, let alone satisfying the family needs.
Yet, they lived happily and we all fed well till we grew and left for greener pastures.
What have you learnt from the days of your parents? Then, most spent their money in cash as bank was limited and it helped them to be accountable.
These days, we have Credit Cards which enable us buy things at will as far as there will be an alert at the bank at the end of the month.
Do you know this have Avery negative effect to your financial plans? Am not advising you get rid of your Credit Card, but, what if you used the money to buy the most essential things in your To-Do list?
What if you exercise patience and save some bucks monthly. From your earning before embarking in spending spree?
Note these two factors, Debit Card deducts money from your already earned money thereby, reflecting your financial portfolio at glance.
While Credit Card deducts the money you are yet to earn, thereby jeopardizing your future plans and the ability to spend in time if needs.
We can’t rule off the fact that some Credit Card have better rewards, but, answer yourself this question: how often have their rewards solved my future financial needs?
3. Do You Have An Emergency Fund?
Do you know, it’s easier for us to go to shopping and being carried away by good things the
shop offers us in a tantalizing price.
In getting hold of all this, we expend the funds that could have solved some of our most immediate challenges.
Just as the Credit Card will deduct our
salary once earned thereby leaving us in a limbo.
You should learn to ‘pay yourself first” if you
tend to learn when not to spend. How can you have an emergency fund?
i. You must cultivate the attitude of setting out your savings first before any other thing.
ii. You must set out money for your health as no one is promised sound health all-year-round.
Don’t because you’re stronger today, you spend because you think you can’t fall sick tomorrow.
Saving some part of your money should be part of your monthly priorities and shouldn’t be
treated as an option.
No! You should not hesitate to remove some bucks for saving.
4. Why Spend On Frivolities? –
Spending your income without proper plannings and on unnecessary things is what we say to spend on frivolities.
You should make a list of your bills and their due dates, and set out a good roadmap to clear the bills.
Being in debt isn’t what any should feel comfortable with, so, its proper you pay your bills on time and have a rest of mind.
Don’t spend on what will hinder your debt servicing as failure to do so will result on penalty and your frivolities can’t be of help
5. Determine Your Monthly Pay
As coined, “what gets measured, gets managed.” It’s sound unethical that you can properly manage a fund you don’t know how much it is.
That goes to say, how can you manage your
money without knowing what you earn each month?
You should be able to know accurately
what you could earn in a month as a salary earner.
And, if you’re a businessman, you should also project in 2 or 3 terms of how much you could probably earn in each month.
This factor has helped me so far as to determine my spending power.
Being able to forecast your income will help you strategize yourself as to what, where, and how you spend your incomes.