Using myself as a case study, I suck at money management. I like to blow money fast *insert Rick Ross grunt here* but my wallet and belly always cry afterwards. In writing this article which I’m sure countless other people have written (although not in the same way), I will give some practical methods that work for me and hopefully will work for you too.
- Your ATM Card is NOT your friend! If you are like me and like to get things on the go, then an ATM card always in your pocket is the worst thing for you. For instance, you go grocery shopping with a list and after getting what you have listed, you see some nice kicks and you’re like ‘man, these things are on sale and I’d probably never get them so cheap again, after all You Only Live Once’ and then you zip out the ATM and add that to your bill. Next time, you’re with bae and she sees a nice teddy bear she likes but doesn’t say anything but you feeling oh so benevolent say ‘c’mon bae, you can have it’. And so the trend continues until you’re broke and buying fried yam and akara from Iya Wura at Ojunrin Bodija. If you need to manage money, calculate what you are going to buy, add some money on it (in case the price is higher) and leave your ATM card at home! This way, you only spend what you set out with and know you can’t buy anything just on a whim.
- Stock up: One of the things that we spend money on the most is food. Eating outside is expensive but since it is a necessity, we tend to overlook it. When your payday comes, the first thing you should do is probably subtract your tithes if you’re the religious type, then fill your gas cylinder or buy kerosene or pay the NEPA bill, then buy groceries and foodstuffs as much as won’t be wasted or spoilt. After spending a sizeable chunk of your payday on groceries, it would be wasteful to eat outside and so cooking becomes your natural alternative.
- Have a daily spend limit: During the school semester, I have a daily spend limit which I try to keep under. This helps you discipline yourself and also helps keep your finances smiling. You should create you spend limit to be realistic and as much as possible, try to keep under it. NB: Do not make the mistake of spending more on a certain day and saying you would spend less the next day to compensate. It hardly ever works and is usually a precursor to stopping adherence to the spend limit plan altogether.
- Reward yourself: If after a whole month, you kept your spending constantly under the daily spend limit, saved, paid your entire bills etc., take yourself out. Go see a movie and top it off with a pizza and then go to Coldstone and get ice cream, basically splurge. You did a good job and you deserve your reward (which should still be friendly to your budget).
We hope these tips help you in spending money wiser and managing your funds better. Ciao.
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