If you went out there to ask different people for their opinions, in today’s economic environment, nearly everyone would agree that standard of living has become a great challenge. The fact is, each one of us have our own role to play. The stability of that economy depends on our ability to maintain a steady income, and have the wisdom to make a very good financial decision.
Most Nigerians realize they’re not where they want to be financially. They live day-to-day in fear and frustration. Afraid that even the slightest change in income could have a devastating effect on their lives. They get frustrated about the debt they owe, and the daily living expenses are making it incredibly difficult to save toward having a sound financial future.
Over the years, some families have suffered as a result of their struggles with money matters. At first the answers to all question on why we are always financially down wasn’t apparently clear. When you consider that most of them have little or no financial education, the severity of their money woes should come as no surprise to anyone.
Some people when they tell them about financial education, it sounds in some of us hear as if they are talking about going to university. You certainly don’t need a higher institution Degree to become smart about managing your money responsibly.
Families make the money decisions they do because they’re in an economic rut; they simply don’t know it. They don’t realize that there are other options available to them. No one has ever sat them down and shown them that there might be more productive ways for them to approach their personal finances.
Barry S. Taylor, a financial expert say mapping out your spending will make a great change to your finance. He said, each month we all have expenses that remain consistent. These expenses are commonly referred to as fixed expenses. These are the bills you have month after month; mortgage payments (rent), car payments, and utilities are good examples of fixed expenses. You may combine and group these expenses if you like. An example of grouping could be the combining of car and credit card payments and labeling them, debt expenses, or labeling rent and utilities as household expenses. Remember, this is your plan, so feel free to list your expenses in whatever way makes the most sense to you.
Also track your discretionary expenses – Unlike fixed expenses, discretionary expenses are “nice to have” items, which we are likely to spend money on each month. Remember, discretionary expenses are those expenses over which you have complete control. One big problem that many individuals face, is when they come to the end of the month and have no idea where all their money gone. Discretionary spending is frequently the culprit. It is easy to spend more than we realize on nonessential items. Trips to the coffee shop, going out each day for lunch, buying lottery tickets, visiting a casino, or simply purchasing items we don’t need are great examples of discretionary expenses. He said.
Taking a few simple steps, and focusing on your finances can make all the difference in the world. It’s also important to remember that there is no magic in putting your finance in order. It takes time to make lasting changes and develop a new financial behavior.
Regardless of whether you decide to do-it-yourself, or with a professional. The time is now. Take that first step today, and start to regain control of your finances.
TIAMIYU ADIO ISMAIL
