Spend Smartly, By Aisha Yesufu
It is not how much we earn that determines whether we are rich or not, it’s how we spend the money and that’s what we could all work on. We mostly spend a great part of our income on things that would not bring in income.
We have to learn to spend smartly especially during festivities or special occasions. Don’t break the bank for a day. Let’s spend smartly and remember that there are bills to be paid after the celebration. Let’s not spend all and go borrowing money to meet our expenses. We must deliberately spend wisely always.
We don’t need to spend on things we cannot afford. When we can buy something easily without having to think about it and the money is already there then we can afford it. If we have to save for it or buy on credit and pay back then we cannot afford it. It doesn’t make sense to spend money we haven’t even earned. The secret to financial independence is making our money work for us. Our monies work for us when invested.
Instead of saving to buy a particular item we can save to invest and use income from the investments to get our needs easily. This is what delayed gratification is all about.
Practising delayed gratification is very important. It allows one to wait and get things when they are easily affordable. Getting the people in our lives to be on the same page with us on delayed gratification is very important. It’s easier attaining financial independence when the whole family is on the same page. Don’t spend on things that you can do without and then not have money for necessities you can’t do without.
We shouldn’t go through life working for money. Money should be working for us. Most people go through their lives working for money. We should work for money for a little while to get the seed money that we can save and invest or start a business and get the money earning and yield passive income. Passive income is income we earn from investments that we no longer have to work on. That is, whether we are working on it or not it would be yielding income. Rent from a property is passive income and can be used to buy things we need.
After working hard for money it’s only fair to get it to work and earn before spending it.
For those with children, January school fees should be in the bank now. As soon as the children are on break, even before resumption, ensure the school fees are put together. Don’t spend money on festivities and not have anything to pay for essentials like school fees. It’s important to ensure things like school fees are paid from passive income rather than active income. This ensures that such important necessities are not affected when one cannot work. Active income is the income that you have to work for to earn and if you are not working you are not earning.
Don’t go trying to show off and break the banks. Showing off doesn’t mean you have got it. You would always know the truth. When you have got it you wouldn’t have the need to prove anything. It’s when one has not got it that one has the need to show off and most times people one show off to do not even notice. You are most likely the only one aware of what you are showing off.
Some spend on things frivolous things that they cannot afford and then complain they don’t have money. Well, one can’t have money if one does not spend the money smartly. If you do not have plans for your money others would have plans for your money and even the money would have plans for itself.
Spend your money when the time is right so it can be fun. Practice delayed gratification. Don’t spend and then find yourself in a fix.
The best time to take care of your finances is now. Start investing now. Start working smartly. Start spending smartly.
No matter how much you have you would spend it all if you have not developed the habit of spending smartly. A higher income doesn’t guarantee financial independence it’s spending smartly that does.
If you are earning one naira and unable to save out of it, even if you are earning one million Naira you would not be able to save from it too. You would simply adjust your taste to fit the new pay cheque. It’s not about how much you have it’s your ability to spend smartly work smartly instead of working hard and spend wisely that determines your ability to be financially independent. Two people can be on the same pay cheque with one having investments and the other barely making ends meet. It’s what they use their money for and how they use them wisely. Begin to think of where your money is going to. Have the mindset of your money working for you and not you working for your money. Keep an expense book for all your expenses. You would see where your money is going to. It would allow you see what you are spending your money on and also give you the opportunity to ask yourself whether what you spend your money on is a need or a want.
Spend your money wisely!
Have a great financially independent year!
