HAPPY NEW MONTH!!! - MINDING YOUR FINANCE THIS JUNE

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HAPPY NEW MONTH!!!

Reading is one thing everybody should imbibe and you would be surprised at how much the information you get will help in changing you. Just two days ago, I was checking out one of my favorite blogs owned by Kacheetee. Her latest post is on 11 bad phone habits we should get rid off. After reading through it, I realized I was very much guilty of many of these bad phone habits. The first thing I usually do when I wake up is to grab my phone and start checking my notifications for messages. Due to this, I always rush my morning prayers. On some other days, I even forget to pray till I'm over my phone. I decided to correct this. The question is what then will I do first when I get up from bed?

Yesterday, I was going through videos on my Youtube and I stumbled on a Christian Youtuber called Leah Essence and the video was about the must - haves every christian girl should have. I urge every lady to go see that video. One of the must - have is a daily devotional. The daily devotional I read is Open Heavens by Pastor E . A Adeboye. I'm a RCCG member. So, you can't be too surprised. I remember I kept the devotional somewhere around my room. So, I went to unearth it and laid it beside my pillow. Now, anytime I wake up, the first thing I do is pray and then, read my devotional and Bible before checking my phone. Frankly, it has helped me in reducing the time I spend on my phone and putting my energy in more practical things. That's the power of reading. We all should make sure to read something productive everyday.

One of the things we should read is about finance. Poor finance management call lead to one being a die - hard debtor or being just an average or unsuccessful person in life. There are so many books on finance. Thanks to social media, we can access a thousand and one articles and hundreds of books on finance via social media. Before we even stumble on these articles and books, it's very important we remind ourselves of very important financial habits we should imbibe starting from this month which will help us in minding our finance. These little steps will go a long way in building and preparing us for success as our future unfolds. How then can we mind our finance this June?

                                  MINDING YOUR FINANCE THIS JUNE

1. LEARN TO ITEMIZE

If you did Economics in Secondary School, you would have learn't about Scale Of Preference. Scale Of Preference involves itemizing a list of needs according to how pressing they are. This is not the professional definition but it's in its simplest. It's very funny how we get a lot of money at this instance and we cannot account for how we spent it in the next instance. This happens because we fail to itemize. And this happens to too many people. Let's be a little practical. Let's take two ladies as a case study. Yemi and Chika.

. Yemi is a house wife. She is a graduate of the University of Lagos but her rich husband stopped her from working in order to spend time with the children. So, she wakes up early enough to get her kids prepared for school, usher them into the school bus, freshen up and watch TV all day, cook and then go pick her children from school while they wait till evening for her husband to arrive. It's the beginning of a new month and her husband gives her N50,000 which she must use in taking care of the house. She is expected to buy anything that is lacking and not complain till the beginning of the next month. He also gives her N10,000 as her pocket money. The next day, she goes out to Shoprite to buy things for the house. From buying new pots to buying food stuff. From buying provision to buying new socks for the children. She leaves Shoprite to the local market and buys rice and beans since they were already finishing. On her way back to the house, she buys some other things from some hawkers. When she gets home, after putting everything in their place, she sits to calculate the change left and discovers that nothing is left of the N50,000 and her pocket money remains just N1500. That means she unknowingly also spent out of her pocket money to buy things for the house.

. Chika is a house wife. She finished her masters degree two years ago and got married that same year. She was working in a bank when her only son fell sick and her husband had to stop her from working so as to face her son's health squarely. In order not to be bored, he opened a little shop for her in front of the house where she sells provision. It's the beginning of the month and her husband gives her N50,000 to buy whatever she thinks the house needs as well as N10,000 for her personal upkeep. The night before she sleeps, she spends at least 30 minutes itemizing the things she thinks is lacking in the house and writes the amount she will spend on them in front of them. After calculating the total, she discovers that there is N5,000 deficit. That means she will have to take out N5000 extra from her personal money to add to the N50,000. The next day, she goes out to purchase all the items. When she gets back home, she puts everything in their place and sits to calculate her expenses. She spent exactly N55,000. So, she's not surprised that her pocket money is less N5,000.

From the example above, Chika is a more wise house wife and handles money very well. Yemi will in no time put her family in debt if she doesn't learn basic finance skills such as itemizing. To itemize is very important and everybody must build that skill. It starts from the little money. Even if you get N100, learn to itemize either in your head or preferably in paper, things you will buy from it so that you won't start wondering how you spent the money whilst singing money slow to enter, money quick to go. If you can itemize for N100, it wouldn't be hard itemizing for N100,000 or a million.

2. BUY WHAT YOU NEED NOT WHAT YOU WANT

This is the major reason why too many of us go broke. Too many of us including me but since I learn't this trick, it's being money - saving. Needs are more pressing than wants. Most times, wants are temporary satisfactions. Needs are more permanent. Needs are confined to the long run while wants are confined to the short run. Needs are a result of an overtime while wants are as a result of 'long throat'. Let's be practical taking two guys - Efe and Tunde as an example.

. Efe is a budding bachelor. He just finished his NYSC and got a job at an oil company almost immediately. His salary per month is N600,000. He has succeeded in getting an apartment. While standing in the empty apartment, he's thinking of how to furnish the apartment to his taste. The next day, he goes out to buy things for his new apartment. He plans to spend just N400,000 on everything. He goes with his ATM card since he would be shopping cashless. He buys a new television set. He buys furniture with a center table. He buys a mid - size bed. He buys some buckets and pots. He buys a new gas cooker. After buying all these, he feels fulfilled. However, as he he's driving back home, he sees a washing machine advert. It's not part of his needs but he feels like buying it outside his pre - planned N400,000. So, he buys a new washing machine. Going further, he sees another advert for a split A.C. Already, he has two rechargeable standing fans but he feels his friends will feel his house better if he has A.C. So, he buys the A.C. Immediately he got back to his house, he received an alert with his current account balance where he had less than N30,000.

. Tunde is a bachelor. He just finished his NYSC and got a job in a bank three months after with a salary of N200,000. After renting an apartment, he decides to furnish the apartment. Firstly, he sits down to itemize according to his scale of preference and most pressing needs. He plans to spend just N100,000 in furnishing the apartment. He drives out to buy the things on the list. Funny enough, he saves extra N6,000 as he spends N94,000 on everything. He is left on whether to spend the extra N6,000 on whatever he wants or save it. Well, that's for him to decide.

From the above example, we can see the power of itemizing again and most importantly buying what you need and not what you want. Buying what you want is unnecessary and can lead you to unnecessary spending. Buying what you need can help you save more money. And the only way you can buy what you need and not accidentally buy what you want is by doing the first step, itemizing according to your scale of preference.

3. LEARN TO SAVE

I used to ask myself one question before 'what exactly am I even saving for?'. This is because at the time of saving, I don't have a vision of what to do with the money in future. So, I result to spending every dime I get. Very very poor financial decision. If you were once like me, think of it this way. What if something comes up? In Economics, it's called Unforeseen Contingency. These are things you never planned for that suddenly comes up. Let's see an example between two university students.

. Teminikan, the first university student receives an alert after a lecture. It's a credit alert of N20,000 from her uncle who is based abroad. Out of sheer excitement, she goes out to purchase that Georgio Armani bag she's been eyeing for almost a year. The price is now N16,000. After buying it, she branches at Dominoes Pizza and get a middle size pizza. She uses the remaining change as transport fare back to campus. On getting to the hostel, she gets a call from her course mate about a text book the lecturer instructed them to buy before the next class and anyone who doesn't have it shouldn't bother coming as a test will be held that day. The book is N4,000.

. Oreoluwa, the second university student receives an alert of N20,000 after a lecture. It's a fulfillment of a promise by her uncle who is based abroad. After calling to thank him, she firstly goes back to her hostel. After freshening up, she picks a pen and paper to think of how to spend the money. She remembers all her wants and how she would have loved to buy everything. However, she remembers there are also some pressing needs like her hair which she has been carrying for almost three months because of no money to do another one. The handout she was unable to buy due to no money and some of her food stuff that is running out. After itemizing and calculating everything, it is summed up to N12,000. She decides to save the remaining N8,000 incase anything comes up. The next day after class, she went to buy food stuff according to the things she listed out, then went to do her hair. She had already bought the material in class. While she was doing her hair, she got a call from her course mate about the N4,000 textbook they were expected to buy. Her mind was at rest because she had more than enough to buy the textbook.

From the above example, we can see that Oreoluwa was more wise. Teminikan will either result into borrowing or having to bug her parents and relatives for money when she could have singlehandedly paid off the textbook. As the Bible says, be careful for nothing. Financially, save for nothing because anything can happen. This would help you not to be thrown off balance or caught unaware or be under pressure.

4. HAVE A VISION

I wanted the fourth point to be about Investing but I think having a vision should come first. If you are 18 and above, you should already have a vision of your life. If you don't, I don't know what to say then. But I beseech you therefore to get a vision for your life. You need to find purpose so that you can spend judiciously in that line. Let me give you an example so that we can all understand.

. Segun is 25 years old. He is jobless and has been seeking for job ever since he graduated at 22. He really doesn't have a vision for his life. All he knows is that he should first get a job then a salary will follow and then he can think of getting married. Today, he got an alert of N100,000 from his father with a message - Start something with your life while on your Job Hunt. He was very happy and couldn't think of how best to thank his father. Immediately, he called some of his guys and told them that his dad just sent him 100k. His friends instructed him to come wash the alert in the club. That same night, he went to the club. He spent the money on drinks and sprayed cash on the ladies around while paying for his friends drink. He came home very drunk the next day and woke up with headache that same afternoon. When he picked up his phone, he saw 12 missed calls from an unknown number. When he called the number back, it was the club manager who reminded him that he boasted of paying for his friends and all the drinks of the sexy ladies there. Now, he has a deficit of N250,000 to pay with nothing left of the N100,000.

. Charles is 25 years old and jobless. He's been seriously seeking for a job since he graduated but all to no avail. He has his life set in his mind and vision but has no capital to carry out his plans. He has always had a flair for web designing and wishes to build an empire out of it. However, he doesn't have money to learn it professionally. Today, he received and alert of N100,000 from his father with a message - Start something with your life while on your Job Hunt. Excitedly, he called to thank his father. After then, he sat down to think of how he will spend the money productively according to the vision he has for his life. He decided that he must firstly pay for his web design training and after then, he would see if there is any pressing issue. He also removed some money for his feeding and resulted to save the rest.

From the above example, we can see that having a life vision is very important. Your life vision will direct you in the way you will spend your money. It will also help you know the places you should invest in. This will debar you from spending money anyhow or on things that will neither profit you or will put you in debt.

5. LEARN TO THRIFT

I wish I had known this earlier. I think i would have been in a better position financially. I used to think that the more expensive it is, the more of quality it would have. Lies from the pit of hell! Learn to thrift and thrift well. This is because a producer might make a shoe and sell it for N800. When people buy it, one will bring it to Ibadan and sell it for N2000 and give the last price as N1500. Another will carry it to Lagos and sell it for N3500 and give the last price for N3200. Another one will carry it to a boutique and sell it for N5600 and give the last price as N5300. Different price, same shoe, same quality. Be wise and learn to thrift. I don't know if an example is required here but the more you thrift, the less you will spend. Okay. Let me drop an example.

. Amaka has N30,000 and goes shopping in a boutique. She spends N29,500 buying just a shoe and a top.

. Chidinma has N30,000 and goes shopping. She spends N22,000 buying two shoes, three gowns, one bag and one glass shade.

Obviously, Chidinma is the winner. To save more money, learn to thrift. Learn to buy things at a cheaper price. Even if you buy a gown for one million naira, no one will know except you tell them the price. Why waste your money and time then? Who remembers my birthday celebration? If you read it, say HOLLA! Now, can you remember the gown I wore on my Birthday? Guess how much I bought it? Just N1000. Yes, you read it right. One Thousand Naira. Would you known if I didn't tell you? Heavens, No! All na packaging, my dear friends. Everyone loved the gown and would have swore it's almost N10,000. Iffa hear! Please, learn to thrift so you can save for money. It's for your best. I never bought the gown from bend down select. I don't buy such but the shop I bought it from, the woman knows that when I start pricing ehn, she don enter am. Cloth wey she buy N1000, she go say N3500. No be me and you. Lol. That's not to say I don't have expensive clothes. I have clothes running to almost N20,000. If I have the money, I will buy it. If I don't, I won't force it. Learn to  thrift and save more!

RELATEDMY BIRTHDAY CELEBRATION

6. INVEST

This is the last point I will be dishing out. Investment is of utmost important. There are different investment opportunities. Invest in them and be sure they are the right opportunities. Not risky ones though except you can bear the consequence. Banks have investment options. You can also invest in a person's business and be a shareholder. You can invest in your own business according to your life vision. You can invest in things that will be useful to you in the long run. Investment should bring you more money from your invested money. It's a way of multiplying your money. If you know you don't know what to do with your money, simply invest it. It's the safest business and money trick available so that you don't remain on the same money level by the end of 2017.

In conclusion, we all have to learn to mind our finances this June. I know we've read so many books and articles on finance. But I tell you, these points I dished out are very important basics EVERY one must know and imbibe in order not to make wrong financial decisions. Being successful money - wise starts from now. It's starts from the little things. This is just a little reminder. I hope the examples were also clear and useful. I also hope we will be able to hop out of debt with these points.

On this note, I wish everyone a HAPPY NEW MONTH!!!

Have a beautiful month ahead as you move up financially!

(Image Source - Google)

EMETE

4 comments:

  1. Powerful finance skills being dished out! Wonderful. My wife must read this

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    Replies
    1. @Mr Kezi, I'm glad you found it useful. Let wifey read it too!

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  2. These are such great money tips!! Saving has helped me with unforseen needs so I'm definitely keeping my saving game up even though the temptation to splurge it when i see sales is real strong but the devil issa liar haha

    toyinwithfashion.com

    ReplyDelete
    Replies
    1. @toluwalade, I'm glad you've been to overcome the temptation to spend instead of save. The devil is indeed a liar! Lol.

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