FINANCE MANAGEMENT 6- THE 9S3 PRINCIPLES


As we begin to round-up these series. The next few posts will be based on principles that briefly explains all we've been discussing in the past few weeks. To get yourself equipped on any and every principle written here, do well to read our previous discussions. Here are "The 9 Smart Saving and Spending Tips" to help you begin a life of financial discipline and abundance:

1. Prioritize long-terms goals: Don’t wait till graduation before you start saving money for your future. Live for the future and not for now.

2. Make scale of preference: Characterize your needs in their order of significant importance.

3. Delay self-gratification: Be patient; don’t spend your money in a hurry in a bit to self-gratify your immediate needs.

4. Stick to a budget: Do not jump the queue, stay with your budget and optimize them.

5. Do not keep a single treasury account: Keep savings and checking accounts at separate banks and for separate purpose.

6. Pay yourself a salary out of your salary: Pay yourself a salary/ wage out of your monthly or weekly income. Don’t be one of those whose standards of living are in direct proportion to their income.

7. Have an emergency fund: This is your parachute in case a job loss occurs or a huge expense pops up. (You should also build a fund for smaller irregular expenses like medical prescription costs or appliance repairs).

8. Do not owe debts: Debts have a way of trimming your income. Your salary isn’t sufficient anyway so, why borrow? Instead be a better financial manager.

9. Embrace the power of cash: Paying with paper gives you leverage to negotiate discounts and your natural reluctance to give up cash can curb frivolous purchases.

So, ask yourself these questions:

Why do I want money? 
What do I really need to spend my money on? 
How effective have I been with my money? 
Am I living the frugal way?

 

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