Managing one’s income is crucial because it enables a person to live a comfortable, stress-free, balanced, and fulfilling life. In reality, one important truth about managing income is that one is less likely to worry about money, especially when you are wise in your spending.
I have always managed my income up to this point, and I can tell the difference between an individual who doesn’t. I know what I can afford and also learn to avoid unnecessary pressure caused by overspending.
In addition, when one is good at managing their income, they ensure that essential needs such as food, transport, bills, and health care are taken care of before spending on less important things.
There are ways I do manage the income that also make savings possible for me because I don’t joke with that. I have a saying about my income, which is “Do not despise small savings.” No matter how little money I have, I save and also record my expenses to track where my money is going.
One major method I apply is budget creation. One would agree that creating a budget helps you know how much money you earn and how you spend it. I take my time to budget using a savings app that I have used for years, and I do not miss jotting down my expenses.
Before I spend any money, I decide how much to spend and anything that exceeds that would be managed. No matter how small the item is, I record it into my app and ensure I do the calculations at the end of the month to track my spending and know what to avoid next time.
Closely related to budgeting is tracking my spending. As said above, I write down every expense, no matter how small, because it helps me avoid spending unnecessarily, understand where my money is going, and also make financial decisions.
Another important habit I practice is saving regularly. There is a saying that money saved will come to save you later. I have always saved no matter how small the amount as I believe in small and consistent savings becoming huge later.
I have made saving a habit, and it's not something I thought of after spending that large part of my money. I am not working fully yet but only writing on Hive. Whenever I withdraw, I make sure to save some percentage first before thinking of what to spend it on.
My savings are divided into different parts; one is invested in shares for the long term, while the rest are split into short-term savings accounts, which I take from whenever I need money.
Also, I ensure I save for emergencies for unexpected needs, and I have always been good with my decisions. Life is unpredictable, and it’s important for me to always keep money aside for urgent needs, as this has always helped me prevent financial stress.
Furthermore, I ensure that I spend wisely. It’s foolish to spend money on frivolous things rather than what you actually need. I have differentiated between wants and needs, except on some days I decide to treat myself to some enjoyment as a way to reward myself after accomplishing a task I set for myself.
Another principle I strongly uphold is avoiding unnecessary debt. This is one thing I tend to avoid because one thing about me is that once I go into debt, I won’t rest until I am done settling all.
Instead of taking loans to get something I want, I take my time to think over it, and if it’s something I really do need after a short while, I save towards it rather than going into debt. And if I must borrow, I ensure I don’t take beyond my limit and can repay on time.
In conclusion, managing income is not about how much I earn but how well I use it for what’s important. Lack of money can be a sad thing, and as well as going into stress unnecessarily, I need to do the needful with my income, and it has helped me live a balanced and healthy life.
This is my submission to the prompt which can be found here
Images Credited to Gemini
