FIVE ESSENTIALS OF HEALTHY FINANCIAL LIVI

This post is targeted at drawing your attention to tips through which your hard earned money will be optimally utilised with you in full and total control of it. It will help you in discovering a gradual step into financial peace and freedom. It will not happen overnight as consistency with time is a factor. The essentials are as follows:-

BUDGETTING:- Budgeting in simple terms for the purpose of this post is the writing in black and white of the inflow and outflow of cash for a specific period of time, usually for a month which is also recommended by this post. It can be said to be the income and expenditure analysis for a period of one(1) month. Scale of preference, that is listing in the order of priority must be followed while drawing up the expenses list. Also we have to be realistic in drawing up the income list. Avoid the inclusion of unrealistic income in your budget. The main purpose for this is to see at a glance how much you make in a month and how much you are spending. In situations where expenses is at par or almost at par with income, the budget must be revisited for adjustment(reduction) on the expenses starting from the last on the list. Such expenses since they are of less importance can be included in the following month budget. It helps you to avoid expenses capable of putting you in debt,put your expenses in check and know how much you can save on a monthly basis. Below is a typical budget you should aimed to achieve:-




INCOME (infow) EXPENDITURE(outflow)
Total monthly pay check----USD1500 Rent----USD50
Transportation and car maintenance----USD200
Feeding----USD400
Utilities----USD50
Children expenses----USD150
Charity giving----USD200
Miscellaneous----USD150
Total :- USD1500 USD1200

In the above budget sample, savings of USD300 is realisable monthly. Ways of improving on it should not be negleted.

SAVE MAXIMALLY:- Maximum saving opportunity revealed by our budget should be utilised. Savings should never be looked at as too much. Most literatures suggested that ten percent(10%) of the total income should go for savings but if you can achieve more than that, let not it pass you bye. Take it as a way of saving for the rainy day.

DIVERSIFY YOUR SAVINGS:- Your monthly savings should be shared into at least two using a sharing formula you so desire according to your plan. The two savings should be kept in separate account or custody. While one can be for emergency purposes, the other should be maintained for family major expenses such as buying a car, house(s), investments,etc.

CHARITABLE GIVING:- This is a principle that has been proven overtime to work. It is all about dedicating a percentage of your income to people in need of it for just, viable and worthwhile purposes. Family members shouldn’t be left out of this. The law of carma states that whatever you do unto others will find a way of hitting back at you, good or bad. Since no man is an island, you create an avenue through which you can be blessed with your need when you bless others with what they need. Give it a trial, it works.

AVOID BUY NOW AND PAY LATER:- This can be likened to eating your cake before you have it. It is a strategy is use by marketers to force out your hard earned money from you. It makes people to buy what they need at higher prices usually eigth to thirteen percent (8-13%) addition to the normal selling price. This strategy even makes many to buy spend so much on wants. You should develop the habit of saving up for whatever you need to buy, by this you save for yourself up to 13% of the amount you purchase the item. Avoid zero down payment schemes, save to buy and you need not buy everything that seems goog, required or attractive because most depreciate in value.

PAY YOUR GOD:- Divinity or spirituality can’t be neglected in the word we are in. As a result, most of us belongs to one religious organisation or the other. Contribute financially to the growth of such organisation. It is a way of appreciating the owner and giver of ideas through which we make money. The law of carma is also operational in this principle.