Making money can be difficult but, planning and spending it can be more difficult. People go through a lot to make money and, it would only be fair if money is spent on the right things and for the exact purpose. When making plans on spending money, it is pertinent to note that you should arrange needs according to the order of preferences; hence you’re sure you’re spending on the right thing. Being able to cater for yourself and having spare left for saving involves meticulous planning. It’s easy to spend money than to manage your finances. Most people, after spending, wonder where their money went because they failed to plan (budget) for their expenses.
Steps in managing money efficiently
You have received your payment and have lots of expenses to make. You want to be able to cater to these needs to some extent. These are steps you should follow:
Make a plan:
The first step to managing finances successfully is by making a plan. Making a plan will guarantee success in any set goal. This plan will include details on how you want to spend your money. It can also be called budgets. This plan includes what you intend to spend your money on, arranged in order of preference or importance such that when you’re solving a particular need, it is according to its urgency.
Live within your means:
It is not enough to create a plan. You should also be able to follow it promptly. You have set aside money for a particular need. It’s only advisable to stick to the budget for that need, so you don’t overspend.
Set aside money for emergency purposes:
Just as it’s pertinent to plan your expenses so, it is to save. You should set aside money every month for emergency purposes. Unexpected expenses might come up, having funds set aside for that particular purpose will ease your stress.
Borrow money only as a last resort:
At some point, we might need external funding to take care of an urgent need. It could be to pay for a house, a car, or an investment. It must not be a regular thing. Borrowing money should be after you have checked with other available options. It shouldn’t even get to a point where your last resort is to borrow money hence the need to plan first.
Make provisions for long-term investment:
Make provisions to make investments that would give you interest in the long run. The good part about having an investment is that it may take time to see the results but, when it comes, it is continuous.
In as much as you’re trying to manage finances and cater to your needs to some extent, we should be able to enjoy the fruits of our labor. We should not be deprived of the good things of life because we are trying to manage finances. Set aside funds for personal enjoyment; Take yourself out, see that movie you’ve always wanted to see, and generally, take care of yourself because “problem no dey finish.” However, it should be done with moderation.
The aim of managing money is the ability to cater to your needs and still have spare for savings and investments. Managing money involves a lot of discipline and learning. It might take time for you to adjust, especially when you’re not used to managing finances or planning for expenses. With dodopay, we have a flexible savings plan that enables you to save and get 22% interest per annum. Visit the dodopay website to know more. Also, see achieving financial stability to understand the importance of managing money.