So on the last post, we started talking Money! Money!! Money!!! Moneeeeyy!!! (yes a song reference…but more importantly if you missed the previous post you should definitely check it out..)
And at this point, I believe I have convinced and not confused you to believe in and desire financial stability yes?
Now here are PRACTICAL tips that can help you attain financial independence:
You may want to get a notepad and pen for this part, so you’re taking notes, and points of action ok?
NUMBER 1!
Budget and keep track of all your expenses.
This, is the start of better money habits. Anybody that wants to “blow” and doesn’t create this culture is like one who pours water into a basket (brilliant yes?). The fact is you cannot multiply what you do not measure…
You want to make more? Then start by becoming better at managing (knowing) what you have in your hands.
Here’s a short story on how keeping track of expenses can help you…
Weeks back, I bought some stuff from the supermarket and was logging all my expenses into an app (we’ll get to this shortly) I use to manage my daily expenses… while doing this I discovered that I had been billed three times for one bread (fear God oo 🤷♀️). Because I bought other things, the debit had looked reasonable, but if I had not taken the time to note the expenses of the previous day, I would have never known that I lost money (almost #1000 worth).
And how many of us have been debited for stuff like that, and were completely oblivious? So just repent if you don’t create budgets or take not of your expenses – it can be weekly or monthly, but please let us be prudent and prove ourselves to be faithful stewards.
To be clear, a budget is what you prepare ‘BEFORE‘ money comes in. Your budget should have everything you currently spend money on or intend to spend for the financial period (day, month etc.). Budgeting basically helps you plan better. For example, if I want to buy gifts for loved ones during birthdays, I’d include it in my budget from now so that when the time comes, I’ll not be doing “pajawiri” (like rush rush).
Then when money comes in, you can use an app (like me😘) to track the actual expenditure. Or you can use an Excel sheet to log in your expenses like – Transportation, Tithes/Offering, Gifts, Clothes, Feeding etc. For this I use apps like; MoneyManager (Has a yellow piggy as the logo)
Creating this culture will give you a sense of value for your money, along with a sense of control and order. You’ll find yourself feeling like a boss (that you are) because you’re in control of your money and not the other way around.
NUMBER 2!
Incorporate savings into your budget
Most people treat savings like a distant friend, “Woo, I’ll save what’s left.” Guess what, you will rarely save anything . Lol. You will almost always spend what’s left🤡.
If you’re new to savings, start with something called ‘Emergency Funds‘, we’ll call it EF going further..
So the total amount of your EF is at least 3 to 6 months of your monthly expenses. Assuming you normally need 150k to cover all your bills per month, then you should begin to save towards having 150K x 3 Or 150k x 6 as your EF. This money is not for investment, it is money that is fluid and can be easily accessed in the case of an EMERGENCY, so we are not caught unawares, or under any pressure if yawa gas.
My goal EF looks lofty to me, but guess how much I save in it monthly – 5k. So every month, I save 5k in my EF and it might seem small to someone else, but I’m seeing my EF grow on a monthly basis and that’s very ok with me. Please this doesn’t mean you should put all your money for one month into your EF.
Why do I need Emergency Funds?
Because as I said earlier, life is unpredictable, and when life happens, like it always will, you will have no need to turn to borrowing money to cater for unforeseen circumstances.
Your Emergency Funds should have 50k x 3 Or 50k x 6 of your monthly expenses, not your monthly income. No one size really fits all (tracking would helps us work out a system fits for our specific needs). If you want to even save EF that’s worth 2 months of your monthly expenses, that’s fine. And here’s another good reason to start an EF;
Remember the lock down last year, many people lost their jobs and many had their salaries slashed. If they had an EF, they’ll have had money saved enough to cover for 3-6 months expenses without feeling like life is about to end. While they work on how to get a new job or start a business. You get!
Think of it like survival money in a worst case scenario.
If you’d like to know more you can read about it here📍
Moving on to number 3!
NUMBER 3!
Separate spending money from savings; needs from wants
This just goes to further emphasize tip 2. The point is be deliberate Queens.
See, If you’re not intentional about this money thing, you will wing it. That’s why some people wake up at 40, they’ve worked more than 20 years, but can’t account for those years of productivity.
For me, what caused an awakening was my mum’s death. I had been working for more than a year by that time. Had had many internships but hadn’t saved or invested a dime. Then grief stared me in the face and gave me a brain reset. I realized that if I continued to work 5 days out of 7 and couldn’t account for the money flow, then I was going to end up very broke, leaving no generational wealth like I often confessed. You see it’s not just about confessions oh! What about the “manifestation?”
If you don’t put pen to paper and do some work…, you’ll probably see nada! shishi! (nothing basically)🤡
Speaking of pens and paper, I’ll pens up here, so we can conclude on the next post. Love and Light Queens❤
Love YSB💕
Young, Saved and Beautiful(YSB) 