How do you manage your income? Share your real-life experience and thoughts. Share your thoughts here, you use as much words you can and open your mind with all of us here.
Hello friends #indiaunited, compliments of the season. It has been a season of tight schedules and working long hours to meet clients and organisational demands. I trust you are fine. I am excited to be participating in this prompt on managing my income.
Mathieu Stern
I have some streams of income, and like spending money once I earn, either by supporting others or settling the things I want, but setting up a personal monthly budget and plan has helped me in managing my resources. A personal budget is a means of streamlining my income and expenses to suit my cash flow and prevent unnecessary expenses that will put me in disarray.
This means that I first of all map out my needs, not wants, for the month in order of preference or priority, with their cost. I say needs because I may want the whole world, but actually need just a small portion to keep me going. So, in this scenario, I will separate the two while I concentrate on my needs in order of priority.
Immediately I earn an income, I put out a substantial amount to my Piggy Vest savings account, while I remove a certain amount for my transportation and miscellaneous expenses, and then look at my to-do list for the month and work on some needs I have prioritised, while I push the other ones to the next month or until I get another income.
Some of the benefits of this personal budgeting and planning are that it enables me to stay financially afloat, and it curtails reckless and unnecessary impulse spending. It also prevents me from being in debt. Since I learned this aspect of life, I have a sense of responsibility and not extravagant living. I have also been able to save funds for good investments and other activities.
However, I overdo things by sending more to my savings and putting myself in a tight corner. Thereby losing the interest Iām supposed to get for the month because I always break the rule of withdrawing before the maturity time. I am working on improving that aspect in my personal budgeting and planning style.
AI Generated
I also use some apps like the online Esusu from some mobile banking apps and the traditional wood savings to put small balances I come back with. Whenever I take stock of it, the yield is helpful.
In conclusion, using different methods to manage my income has disciplined and put me under control and consciousness of living with a set personal budget plan. And this budget has helped me a lot in maintaining financial sanity and balance.
Feel free to join here
