The real fact about money is that everyone knows—through books, knowledge, or ideas—how to manage money. However, when it comes to practicing what we know, it becomes very difficult, and no one is to be blamed. This is because the way money comes to different people is different. Some people are very rich and see money in large amounts all the time, while others are very poor and see very little money on a daily basis. Therefore, managing money is practically different for everyone, even though everyone is expected to follow the same well-known standards.
As for me, I manage my money through budgeting, and I also apply the scale of preference while doing that.
Prioritising basic needs: Can a dead man save, invest, or gift money? No! The way I spend my money starts with considering my basic needs, especially food, health, and shelter, before any other thing. These days, the cost of living is very high, and we cannot ignore the high cost of feeding as well. So I tend to settle this need first, even if it takes a bigger portion of my money. I do not complain because my system must be alive for me to keep hustling for money.
Shelter and health are also part of my priorities. It is always important to me to make sure I am living in an undisturbed house or area, and I do this by making sure I am setting aside a portion of my money for house rent in order not to get embarrassed by the landlord. As for health, I do not fall sick often, and I also do not wait until I am severely sick before attending to my health. Once I notice any symptoms or discomfort in my body, I usually go for treatment. These three needs are usually what take a large part of my money, and whenever they are settled, I always feel free to live on without much worry.
Other needs: As far as I am concerned, other needs aside from the basic needs do not get major attention from my money the way the basics do, and this is also because the money that comes into my hand is usually not enough. I then share and spread the remaining money among these needs, such as investment, clothing, giving to parents, and so many others. It is also from this remaining part that I reserve money for emergencies.
Thanks for reading.
This is my entry to Indiaunited contest
Photo used is mine