As humans, it is a constant to make and spend money. Every blessed day, our entire world revolves around making and spending spending money. Even though we will have to inevitable spend money in buying essentials like food , clothes , renting a house and Transportation, we often find ourselves spending too much money on other things which often put us difficult financial positions. So many times many of us shout financial freedom and our desire to achieve it. We want to be financially stable and the truth is, it is not that we are not making money but one of the things I have just noticed is that a lot of us actually have issues with keeping true to managing our expenses and the truth is several times, it always lands us to trouble. I mean terrible ones most of the time that at the end of the day, we always regret it.
Last year, I was brutally taught a great lesson of the importance of tracking and managing our expenses as it is really key to managing our finances. Last year, I spend anyhow and how it comes. At the end of the day, I actually get punished for that brutally as at some point, I was forced to borrow, I mean I land myself in debt. Terrible ones. And so today I have come to share with us, some vital tips which I discovered will help you to manage your expenses and achieve that financial freedom you actually desire so much.
The first strategy I will start with is for you to actually focus on the Fundamentals. What do I mean by that, there are Fundamentals like food , shelter , and health , which should be taken priority in our expense sheets. I called them needs also. In the world of economics, there is needs and there is something called wants. We should be very careful that we are not only after our wants and disregard our needs. In fact I will always advise that your needs come first much more before your wants.
The truth that many of us fail to accept most of the time is that We can't be spending equally on things like health and night outs. So lets ensure that we allot the right proposition of our income to the most pressing quarters. It is okay not to be able to spend freely like your peers , it's okay , don’t feel pressured , you’ll get to that point , but before then meticulously plan out what takes the firm priorities.
The second vital strategy I will also like to talk about is that you should only do it if only you will do it. This might also look quite confusing but let me explain below. What this means is that you don’t spend on things that are not directly your responsibilities. Let’s say your friend is in a financial need, and your friend has other closer relatives or even parents , ensure you don’t offer to shoulder all the burden at best make a little contribution to assist. Another example is say your sibling needs money for their tuition fees , if you have other siblings or relative , you could task all of them round instead of shouldering the burden entirely by yourself. Most of us, we listen to pressure outside that we spend on things that does not concern us and at the end of the day, it affects our finances.
The next one on the list is for you to contually Check and vet your expense from time to time. This has a way of helping you to track your expenses and helps you to cut out unnecessary expenses that need to be cut out. It Is important that you revisit the manner you spend from time to time. Our habits and responsibilities change as we advance in life and consequently its effect on our expenses. So therefore there is the need to adjust variables to suit these changes. One way is to choose to use the subway instead of using ones private car to reduce the cost of car maintenance and transportation, or choosing to borrow books from the library as a student as opposed to buying the books. The aim is mostly to analyze and see how best to get essential done in a cost effective way , thereby making funds available for meeting other need areas.
The last one I will like to talk about before ending it today is for you to Make room for miscellaneous expenses. I called them the emergency or unexpected expenses. Yes it is always bound to happen and that is why Yes , always make extra funds available for emergency needs. This miscellaneous fund is there for cases of dire need , like health emergencies , or other critical life cases that may arise. This is important because it makes ones mind to be at peace and focused as we know there's something on ground for emergencies.
As I conclude and Like I have stated the importance of managing our expenses cannot be over emphasized , as it goes a long way in shaping our Finances and the quality of life we live , so we should ensure to know our essential needs and only spend on things that are our sole responsibilities while vetting our expenses and also ensure to have funds for miscellaneous expenses.
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