There are people who have financial income’s but they always complain on having so many things to spend on , a terrible mistake often made by income earners or even business owners is they spend more than what comes into their pocket and that means before the next paycheck comes, they are in debt already. Differentiating between your needs, your wants and your obligations, will make you financially sustainable.
In order for humans to live, certain things cannot be ignored, those things are called our needs, and our needs includes: feeding, clothing, transportation, these factors considered to be needs have to be categorized according to level of incomes. You cannot be a low income earner and try to fit into the class of those who dress on a high-class level without going into bankruptcy. Dress and feed according to your level of income or you risk spending more than you earn.
The moment you begin to buy expensive cloth as a low income earner, you are focusing your spending on your wants, just the things you do not need and could possibly ignore is what you are interested in, maybe because you are trying to show off to some friends or prove some points to family members.
Obligations are of course, the responsibilities that cannot be ignored. You may have to pay your kids school fee, electricity bills and rent, these are under categories of obligations this must be fulfilled.
In order to gain financial freedom, your method of spending needs to be categorized. After proper categorizing, it is necessary to prioritize your budget, you may have a set budget for food, new clothes and shoes and loans to pay, rather than being indebted and putting on new clothes and shoes, it is only wise to clear off the loan first before getting clothes and shoes, remember that getting late on loans attracts increased charges.
You can also try this great idea of writing down the things you have spent money on during the course of a week or a month, after that you have to do a deep review and score your spending level on a good rate or on a bad rate. If your spending rate is bad, there is room for improvement and if it good then you can keep it up and keep improving. In order to have a balanced financial life, strategizing before you spend and analyzing after you spend, keeps you in control of your finance and makes you a financial champion.