Managing Your Financial Spendings As A Way To prevent Bankruptcy [Part 3/3]

A lot of people have so much mismanaged their spendings that it appeared that they have financial challenge whereas it is induced by their own actions. You will be surprised that there are many people that you earn more than that are more financially stable simply because of the way they manage their money and the way they spend. In our last episode, we considered the various points to have handy in order to manage how one spends. Here, we shall be taking the concluding episode of how to effectively manage one's expenditures so as to prevent one from entering into financial stress or strain.

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1. Consider the long-term benefits of what you want to spend on

There are somethings that only have momentary benefits but with some disadvantages over time. These should be avoided. When buying or spending money on something, you should first consider the advantages and disadvantages of what you want to buy and know if it will be worth it in the future. For example; one of my mentors shared how he went for a particular job some years ago with two of his colleagues. After the job, there were paid handsomely. The two of them got cars for themselves and looked rich. Obviously, there is nothing wrong with buying car. However, my mentor bought two plots of land with the money.

After about 7 years, the cars that were bought by the two other guys started going into obsoletion. But the two plots of land that he bought have appreciated so massively because of the present of a newly established university in the area. The land that he bought 7 years ago is now worth many times the amount he bought it. As a matter of fact, he sold one of the two plots and used the money to develop the other plot. You see, he saw the future when he moved to buy the lands but the other guys saw just the immediate. When drawing out your spending budget, you should also put the future into consideration.

2. Avoid habits that normally drain your funds

If you see yourself always spending more than you budgeted for on things, you need to ask yourself the reason behind it. There may be habits that you need to curtail that normally make you to spend more than required. While growing up, there was a man within the neighbourhood that was a habitual drinker. Every evening, he would stop at the shop near his house when coming back from work and drink many bottles of beer with grilled meat. At a sitting, he would spend thousands and sometimes, he will also buy for his friends. He also engaged in gambling. Before the month ends, his funds would have finished and he would be waiting for the payday to be able to offset his debts which he had incurred at the bar.

However, in the same office that he worked, a colleague of his, who also lives within the neighbourhood and also earning the same salary was able to save up money because he managed his funds well, he started a side business, then moved from the rented apartment into his own apartment. While the other guy continued to live an extravagant lifestyle. He continued that way until we left the neighbourhood, so I do not know what later became of him. This is not saying that it is not good to enjoy yourself, but everything should be done in moderation and it should not be habitual. More so, consider your finances first before you indulge in such.

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Image from Pixabay

3. Avoid peer pressure to spend

There are times that your peers can make you to spend on what you would not have. You are the only one that knows your financial capability at any time, so do not allow anyone to make you to spend more than you budgeted for. Peer pressure can come in very many forms. For example, fashion has become the trending thing and because your friends can afford a particular fashion outfit, maybe designers, does not mean you should go out of your budget just to have a similar thing. More so, if they want to compel you to buy it and you cannot afford it, a simple "no" can solve it.

If you cannot afford to buy something today or you have a better and cheaper alternative that you want to buy for obvious reasons that hinges around finances, then do not allow pressures from peers and friends to sway you to go against your wish. If you go broke while trying to fit into their dictates, they may not even help you out of the situation, so be wise with your spendings.

Thanks for reading

Peace on y'all

Posted Using LeoFinance Beta



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