Why Your Finance Keeps Going Down the Drain
Hello beautiful people, I have heard a lot of people talk about their finance and they end up complaining about how their financial lives are. You see, one thing I have noticed with people who complain about their finances is that they lack management. They find it very hard to even manage their little so how do they intend to grow their little to become something big? Your ability to manage little resources will determine how you will harness opportunities to grow more. If you waste the little you have, how will you grow and not waste a larger fund when you get it?
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Another thing I have noticed is that people who have financial problems do not know how to plan what they are about to accomplish. The ability to foresee something on paper is very important as it is needed to grow in reality. People do not understand how to write or plan properly. You need to understand how to calculate your income, and how you intend to spend it. You cannot complain about your finance when having a strategy on how to keep the little you have and grow it into more. If you are able to win on paper, you are likely to win physically.
While things do not happen how you plan them, it helps you to be prepared for whatever is coming. With planning, one can prepare for financial opportunities and capitalize on them. With proper financial planning, strategic thinking and maximized opportunities are certain. When you place your finance in order, you will surely get an increase in those finance. Think of pouring your clothes into your box without properly arranging them, you will find out that the box won't be able to take as much as it would when you arrange them orderly. Take a record of everything and plan for everything. Set a budget and understand what you are spending on. It is very wrong to draw up a budget after spending, budgets are meant to be drawn before spending. When you draw a budget after spending, there is a high chance that you will not be able to account for about 60% of everything you spent the money on because the brain cannot remember everything.
When you also decide to keep taking care of other people's needs and other things before attending to growing your personal finance, then you are on your way to doom, because you are to sort your financial problems and be stable before you look at other people's problems. In my tribe, it is believed that there is a spirit that spends people's money for them but in reality, there is nothing like that, actually, there is one spirit that spends your money lavishly, and that spirit is you. When you take a proper step to start monitoring your finances, you will be very surprised at how much you are spending on irrelevant things. If you are able to record your income and expenses, you will realize that you have been your own problem. When you want to spend money next time, be willing to classify each penny, dollar, cent, or whatever currency you spend in your country.
Ensure that you are deliberate with what you get, and what you spend, then be willing to develop your spending plan. You should be able to classify your income, and that includes the salaries you get, investment incomes, royalties, and gifts, then you classify your expenses which classified into taxes, savings, rent and mortgage, home maintenance, food, transportation if you have children you include child care, entertainment (which is where most people spend their money and do not record for their expenses, only to become very stressed out when they do not have money), pets (although some people spend a lot of money on their pets, if you are struggling with your finances, you should give your pet out to be adopted or in my country sell the pet so you can be able to handle your finance), clothing, medical, miscellaneous, and Debt. Properly categorizing your expenses so you can have a good budget and understand how your money is going. You can not have a bad budget and then expect financial success. Always ensure that your total income is always more than your expenses and you will see that you have developed wealth over time. It is very wrong to spend everything you get, there can be cases of emergency and you will need something to fall back on, at such a point. One thing you also need to stop doing is impressing people. You should not spend the money you do not have to impress people who do not care about you in any way just to feel above, when in reality you are just not noticed. Ensure to reduce your expenses to the barest minimum, and watch your wealth grow.
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