Hello everyone, how are you doing on this beautiful evening? The week has resumed in earnest and we are off to a great start indeed.
As always, I have a topic that is quite generic because it affects all of us and there is no avoiding it. And that topic is none other than Finances.
For most of us, the majority of our problems are deeply rooted in the limited amount of money that is available. That is the long and short of it. We all believe that if we got a lot of money now then a lot of our problems will be solved just like that.
But I am afraid that is not how it works. If there is one thing I have learned as an adult is that the more money you have, the more issues will arise that will try to take that money from you. Because when money comes, lifestyle changes totally. It is an unavoidable fact.
This is why when I see some people put off their dreams and aspirations because they are waiting for when they will get enough money, I shake my head. That money never really comes. Unless the person wins the lottery or he sees someone that will be willing to give such a huge amount of money then he will probably be lucky.
But in the case where you have to work for the money yourself, the best time to get to it is now.
Stop waiting for the big cash. Instead, start saving up from the little you have. I know it might be a bit difficult to save based on the economic situation, but it is an inconvenience that you have to be willing to endure. Because this is for the future.
It does not matter how little you make, even if it is a cent it is enough to be saved. Because if you save one cent each day in a week, it becomes seven cents. Then imagine when you do it b for a month straight. Or a year! And when the money you have saved becomes enough, you can then look for legitimate investments that will multiply your source of income.
Let me tell you how I do my own. When I get my paycheck, I split it up almost immediately. 50% is for daily expenses, 20% is for investments, 10% is for emergencies, 10% is for tithe and the final 10% is for savings.
And with this format, I make sure I do not live above that 50% income that I have allocated to myself. This way, I train myself to always live below my means so I will always have leftovers. And in the event of any emergencies, I already have a stash to go and take from, leaving my investments alone.
This format might not work for everyone, you can draft out the one that will work best for you and stick to it. Or you can even go online and Google it.
One more habit you must cultivate in this era is the tracking of money spent. We never really notice it but on a daily basis, we spend a lot of money on things that are not even important.
I want you to try out an exercise. At the end of today, just before you go to bed, relax and try to recount every money you spent today. Think of every single penny that left your person, whether it was important or not. Now ask yourself how important those things were to you. Your honest answer will allow you to see the things you did not notice you were wasting your money on.
All these might not be easy in any way, but with persistence and discipline, you will get used to them. There are financial planners online, you will simply have to follow what they say. There are also great saving apps like Cowrywise, and investing apps like Piggyvest. Although I am not sure that these operate all over the world.
But all that will be useless if we don’t first cultivate the habit of saving and investing, and most importantly, living below our means. The necessary sacrifice for a better future.
Thank you for reading, till we meet in the next post.