Hello, good to see you here. If you’ve been looking for some practical ways of managing your finances and taking control of your financial life, then you’re in the right place.
Here are a few tips to help you.
#1. Monitor your spending.
If you ever find yourself always running out of cash, then I think it’s time to start watching where your money goes. Monitoring your cashflow is one important aspect of financial management. You must keep track of your daily spending and know what you’re really doing with your cash.
#2. Have a monthly budget.
I know you’ve heard this severally but, hey, you just have to try it out. Whether you’re trying to manage your business finance, family finance or your personal finances, budgeting is a very good and effective approach you could use.
Setting a monthly estimate of income and expenses will help you know what to spend and when to spend. A budget will guide your cashflow so that you won’t have to spend on things that don’t really matter to you or your business.
#3. Buy what you need not what you want.
Economists told us (and it’s evident too) that human wants are insatiable. Meaning that we can’t stop desiring material things in life. It’s part of our make-up as humans. Even in business, there’s always a desire to get the best so as to outrun your competitors. But, you know what? These desires will always remain. Even when we get what we wanted, there’s always a craving for more.
If you therefore want to manage your finances and take control of your financial life, you must first learn to control your appetite for material things. Before you spend your money on anything, you must first ask whether it is something you really need or it’s just a natural desire. And how you know this is by weighing the opportunity costs.
#4. Consider other options that makes you spend less.
Another way to control your finances is to consider if there are other alternatives to your spendings. Before you spend, try to see if there’s another means of getting that thing done that will reduce your cost.
For instance, I noticed that whenever I withdraw money from a POS using my debit card I often get charged in three different ways. My bank charges me, the vendor’s bank charges me and I still have to pay the POS attendant. I averagely pay #250 for a transaction of #5000 and the higher the transaction the higher the charges. So I resolved to transferring from my mobile app to the vendor’s account and pay #110 total charges instead of #250 for a transaction of #5000.
This is just for illustration but there could be other ways of applying this rule too.
#5. Stay out of debt.
If you would really stop being broke, then you have to stop borrowing excessively. You need to clear off your debts and then try these ideas I’m sharing with you.
Sometimes the interest you pay on those debts are the ones taking away your money. Stop borrowing please. If you have to borrow, make sure you have a steady income that will be able to service the debt and still leave you with enough to live by. Don’t borrow to buy luxury or host a party, that’s a bad habit.
#6. Don’t lend out what you can’t afford to lose.
I’ve fallen victim of this many times and I’ve learnt my lessons. Sometimes you see people cry to you and ask that you borrow them some money. And because of your church-mind, you’ll not think twice before lending them. But after they collect the money, many of them become lords and refuse to pay back. The painful part of this is that, most times this unjust act comes from people you know.
So, in order to avoid stories that touches the heart, ensure that the money you’re lending out to people is what you’re able to bear in case the borrower refuses to pay back. It’s always good to be on a safer side. And, please, don’t ever lend out your feeding allowance, your school fees or business profits if you’re into business.
#7. Have other streams of income.
There’s no better way to stay out of financial lack than to open up multiple streams of income. Diversification is the driving force of any economy or business. So also, as a person seeking financial freedom, you must be diversified. You need to have other sources of income than your monthly salary. Salary don’t make people rich. Get that.
#8. Avoid gatherings that won’t spare your pocket.
I know this is funny but it’s actually true. Some gatherings won’t spare your pocket. You need to avoid such gatherings. If you know hanging out with your friends will make you spend all your money on pleasures, please stay back. If you know your girlfriend is always demanding for money whenever she comes visiting please try to limit her visitation because if you go broke she won’t come to feed you— unless the few sent ones anyway.
Any social gathering where you spend more than you gain is not worth attending. You should dissociate yourself from such gatherings.
#9. Learn to save no matter how little.
Saving is an everyday language but ironically, only few people learns it. Saving is the act of setting aside a portion of your income for future purposes. The truth is that, if you don’t save when you earn little, you can’t save when you earn big.
There are many who think the reason they can’t save is because their salary is little. But that’s not true. The reason why you can’t save is because you lack self-control. You can’t control your appetite for spending. You have to change. Save the future now!
#10. Be a Giver.
There are some laws in life that can never change no matter what theorists propound about them. One of those laws is the law of sowing and reaping. Whatever you do in life will always be reciprocated to you in one way or the other. So, if you want to be blessed financially, learn to be a blessing to others too. Learn to give to those in need. Giving is an eternal investment and if you believe the eternal law of reward, you will surely reap a return someday.
Let me go in the way of the holy scriptures “Give and it shall be given unto you…” Luke 6:38
I have no doubt that this article has really helped you. You can comment below if you have any question and let me know your view about this topic. Also like and share on your social handles.
Thanks for reading…. I am Michael Egbayelo
EnnyFinance 