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I
dedicate this article to everyone struggling with their personal finance. I will be sharing a few tips with you on how you can enhance your personal
financial management.
The problem with a lot of people is not in the
amount of inflow of finances but how they manage the little that
comes in. Whilst I agree that everyone wants to have more money and an
increment in income, (as current earnings/salary are hardly enough), a lot of people
do not pay attention to their outflows; where the real problem of financial
mismanagement lies.
Let’s
look at 7 Fs that will help in managing your personal finances.
1. Frugality.
Wikipedia defines frugality as the quality of “being frugal, sparing, thrifty, prudent or economical in the
consumption of consumable resources such
as food, time or money and avoiding waste, lavishness or extravagance”
To be frugal means to be able to put resources
together in the most optimal way. The pressure on individuals to spend their
hard earned money is on the increase on a daily basis. Online shopping as
convenient as it is, has made personal financial management a more inundating
task. With being able to make purchases with your bank cards online, life
couldn’t be easier; yet finances couldn’t be more strained. Discount deals,
online and physical promotions all increase the temptation to keep shopping.
He who wants to become financially independent
and not be entangled in a web of debt must be able to judiciously manage his
resources well.
2. Fill your pantry.
Every one desires and deserves a good
life and nothing could be as fulfilling as being able to live in a nice house in a serene environment, giving your children the best of education, going on
vacation to wherever you desire etc . In all however, proper planning is
important. It is needful to say that life is in levels and everyone must be
able to cut their coats according to their size per time. The people you see
excelling financially; those whose names are on the world richest list must
have paid the price to get there and usually; hard work is part of that price.
Hard work , diligence and determination pay off. And so, whilst you are in the
process of rising to the top, identify the most important needs of life;
especially the basic things for you and your family. We all know that food for
example is basic for survival. Provide food for your family; for the children
as it keeps them going. Fill up your pantry as much as needed. Provide your
family with balanced diet; especially the children. It’s amazing that adults
are the ones who eat more protein than children (you see a piece of beef being
cut into pieces to be shared by children whilst mummy takes 3 pieces herself).
Who needs protein the more? Children! Because they are in their growing stage!
3. Family First!
A
lot of people are committed to helping others and it’s a good thing; but it
shouldn’t be at the detriment of the needs of your nuclear family. It is
beneficial and rewarding to help people; don’t get me wrong, (we are going to
talk about that as one of the points in this article); but it is necessary to
let you know that Family should come First. The needs of your immediate family members are
paramount. Whilst every expense screams at you for attention, some are basic
and should never be relegated. Education is the best investment you can give to
your children; their school fees must always be promptly paid! Maslow’s
theory enumerates the
hierarchy of needs by which people are
motivated to reach the highest level called self-actualization. The
physiological, safety needs of man are basic but paramount and of course love,
esteem and self-actualization are required to attain self-fulfillment.
4. Fight
Waste.
We
have spoken about Frugality which entails being a good manager of resources,
but everyone who would want to become financially independent must go a step
further from being frugal to being an ardent hater of waste. You see, you might
have been able to manage your resources by buying just what you need, but then
how are they utilized? In this day and age, whilst in many nations, some people
barely have enough to eat, we see people hurling food into the waste bin. Why
serve more than you can eat? Some would even buy food from fast food outlets or
restaurants and still not finish such!
The
aso-ebi syndrome is one of the
wasters of resources in this part of the world.
I know many would disagree with this point though. I used to be guilty
of this; and I still find myself sometimes caught in the shenanigan of aso-ebi purchase
in an attempt to “show love” and support the celebrant. The norm nowadays is
for people planning a party to “raise” money through people by selling the
fabric for the events to their friends and families. It is ridiculous that they
even inflate the prices so that they can buy gifts for those who purchase the
materials. A party is a forum for people to gather and rejoice with you; why
exploit them? You find out that most of the time, a lot of us hardly wear such
fabrics for a long time after the party and they keep space in our wardrobes.
Fabric sellers make their money, party planners are happy the party is colorful
as a result of the similarity of fabrics and headgears, tailors are counting
their blessings and in one corner,
someone is paying the debt for aso-ebi. If it is to show love, one could
actually give meaningful gifts or even cash gifts to the person who is
celebrating instead.
He,
who would be master in managing his finances well, must eliminate every waste
outlet.
5. Feed the poor.
There
is nothing as de-humanizing as not being able to feed oneself or one’s family.
It is grueling to see people scouting through dunghills looking for what to
eat. We all need to join hands together to eliminate hunger in our space and
wherever it is around us. The law of
karma explains to us the principle of sowing and reaping. “As you sow, so shall
you reap." Everyone who sows good, receives good in return.
Maybe not you, but your children will definitely benefit from your acts of
kindness.
The
hand of the giver is always on top and there is a sense of joy that comes from
helping people around. Feed the poor, clothe them, arrange for outreaches to orphanages;
not just for taking pictures to show what you are donating; but for the real
essence of it. No one deserves to live a lowly life. We are products of the
magnanimity of a good God.
6. Follow Successful people.
When
I say Follow successful people, I don’t mean on Twitter or on Facebook necessarily,
but following the footsteps and examples of people who have excelled either in
your career field or in others career fields. There is a lot to learn about how
they invest, their attitude to risk taking, how they spend and so on. Recently,
I read an article about the lifestyle of some of the richest people in the
world and it blew my mind. Rich doesn’t mean wasteful; thriftiness is one of
the qualities they possess. I know of someone who is comfortable enough to fly
First class always but sometimes, would fly in premium economy, sometimes in
business class and sometimes in economy! It doesn’t change his status in anyway;
sometimes it might just be able to save up some money for other important
needs. Yet you see some people
“borrowing” money and spending all their hard earned savings on flying business
class. It’s good to live a good life; but remember life is in levels; there are
phases and seasons to it!
7. Finish whatever you start
When
it comes to having a breakthrough in your personal finances, you will do
yourself good by finishing whatever you start! Some go into a particular
business today, by next month, it’s a different line of business. They never
push through anything they lay their hands to do. Some have started to build a
house but they are stuck at some level for financial reasons (which is tenable
sometimes) but instead of pulling every little resource they get to conclude on
it, they wait for the next big break before continuing with the project. The
little you see here and there will make a difference. Be a starter and a
finisher of good things!
There’s
so much to say on Personal Financial Management but for time and space, I will
stop here.
If
you would want coaching or mentoring on personal finance management, you can
reach me @ info@booksmartsolutions.com
for more information.
Stay
Financially Independent!
The Pen....
