Hello there!

This is very much unlike my normal and usual posts but for some reason, I just felt pushed to make this post and also because I am currently in the process of getting my finances in order.

I am not perfect when it comes to these things neither am I the best person to give tips on personal finances, saving money and how to get your life back on track financially. But I just want to share some things I have learned and still learning about managing finances.

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If you are at a point in your life where you feel you can’t seem to control your finance and you feel your spending habits are putting you in an embarrassing situation as it did me, then this is for you. The tips I am about to share apply to everyone whether you are like me and you need more control of the money you have or you just want to be more accountable to yourself.

Know your inflow and outflow.

This is the most important thing when it comes to managing finances. Be you a student, worker or entrepreneur, know how much comes to you and how much you spend. Sit down with a paper and a pen and track your expenses and income. How much do you earn as an allowance or salary? How much do you spend on feeding, transport, bills per week or month? Sit down and create an analysis. This helps you know what particular thing takes the most of your money and what gives you most of your income. This step is 40% of your financial management skill. You may not necessarily be able to get the exact amount especially when it comes to spending but you will have an idea or a rough estimate in the least.

Debt Management.

Debts are poisons to every financial life. They suck your money, emotions, and energy leaving you aching and closer to financial death. So sit down and calculate every single debt you owe to the last dime and draw a plan stating how long you want to get those debts paid and get them paid! The most important thing is you plan and have to get them paid and avoid them afterward.

For example, let’s say everything you owe is 50,000 then draw a plan stating how long you want to pay back, be it within a year, 6 months, 3 months, etc. Using 2 months as an example, this means you would have to pay the sum of 25,000 for the next 2 months or 10,000 over 5 months. Stick to that plan and get that debt paid.

Set savings goals.

Now that your debt issues have been settled, set a savings goal and a savings plan for yourself. Note that this goal should be very very realistic, don’t run yourself dry all in the name of saving (listen oh my soul, listen!!). Take a specific percentage of your monthly, weekly or daily earnings and keep in an account that you have no access to. I would also advise you have this automated, to make things easier. You can start small, based on your capabilities and whatever you have. The main aim is to store something.

Remember little drops of water…

Cut Expenses.

Now that you have your debts and savings a bit covered you can now heave a sigh of relief and move on to the next step. The next step apparently would be to reduce your spending. Check out and cancel all those unnecessary things that take your money and look for ways to generally reduce spending. Incorporating little things that can help you save money into your daily activities. Another method would be to keep an eye out for and take advantage of free things. These free things could be free lunch at work, gifts, free outings, free rides, free seminars, free tickets for shows or occasions, sponsored trips, cash gifts, etc.

Passive Income  (Optional).

This may seem a bit hard but honestly, it is worth it.  Having other sources of income will help one a whole lot. It may mean that when some people are at home resting during the weekends you are out there moving around for a bit of extra cash but then you have this sense of security financially that something is coming into your pocket asides from your salary or basic allowance.

Find something that you like or you are passionate about that you can also monetize to bring extra funds into your pocket. It makes things like settling debts easier, saving becomes easier too.

This is not a law neither is it forced. Multiple sources of income is stated here as an option, so, even if you don’t have a side hustle or haven’t gotten one yet but you can manage well enough on your salary or allowance, you will still be fine.

Emergency fund.

This is money set aside for miscellaneous expenses, impromptu spending, unforeseen situations, and any other unexpected spending. Having an emergency fund saves lives. So, when something bad or unexpected happens the ripple effects aren’t disastrous and it’s easier to make a comeback.

Now, this is another thing that doesn’t look so easy. I remember this happened to me a lot when I was in school, I never, for the life of me, had any money saved up anywhere. Money was either in or fully out.

So have an extra account from your savings account where you would constantly put in something for those future emergencies. It doesn’t also have to be large amounts, little by little. You can also put in excess funds, cash gifts or bonuses from work here.

To be honest, I still have days when I am completely broke, like down to zero kinda broke. Yeah… but we will survive.

Plan for Big Purchases

This is something I’ve struggled with for a very very long time. When it comes to huge purchases I am very very impulsive. I want something and I scratch up funds from where ever just to get that thing. Which usually leaves me financially dry for a few days/weeks or however long it takes to get myself back.

I can only advise because I also need to take my advice, to save and plan for your huge expenses. For things like travel, a new gadget, car purchase, etc. Try to be less impulsive about them. Think about the purchase before you make it, save and plan for them.

Learn to say no.

I will like to add that learning to say no is another very important thing. Say no to situations that will put a strain on your pocket, things that will affect any plan you have for your finance and people that always make you spend more than you need to without empathy.

Saying no will not affect your relationship with people, it is not supposed to. Especially if the person is close to you and understands what you are trying to achieve. So learn to say no to things that will stress you financially and things that you don’t need. If they are that important or necessary, plan for it. Maybe your next salary or next cash gift. Plan! Plan! Even though the plan crashes in your face, still plan!.

Happiness and Contentment.

Finally, be happy and stay content with what you have. This cannot be overstated. Feeling contented brings this unexplainable peace and calm to one’s life. Live in the moment. Try not to worry about tomorrow or its needs. Be grateful for what you have and maybe, just maybe, a lot of your financial issues will disappear fade away.

Due to the fact that this is a stage I am going through, I decided to share tips and things I have learned along the way hoping that it will help someone. Hence, I will put out more posts relating to finance making it a series and will be in the money category. In this series, I will go into more details on topics like how to create a budget, how to save money from salary, how to save money from allowance, how to save money on a tight budget, how to save money for students, saving on a low income and more will be covered.

If you have topics that you would love me to talk on, leave a comment below or send a mail to hpbeau01@gmail.com or admin@hpbeau.com.

Until my next post, Kisses!

 


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