Hi guys, now that we’ve agreed that the name of the blog is perfect, let’s get straight to business. You’ll love this thing. Together, we’re embarking on a journey that would benefit us all, for the rest of our lives. Let’s do this!!!
Have you ever wondered why sometimes, people who earn less than some other people eventually become more successful financially? or how some people literally started from the bottom and now they’re here 😎👌🎉? God’s plan eh! (drops mic) LOL. Amongst a host of other reasons (that cannot be discussed here), the underlying factors for most people’s financial success are discipline, and delayed gratification.
While both terms (discipline and delayed gratification) might seem “tough”, it’s usually not that deep; because, very simple and subtle steps can be taken towards achieving them.
Check out My 4 simple steps to financial freedom. Again, it’s not that deep.
01. PAY YOURSELF
Let us look at spending from a different perspective; think about it; when you spend, you’re actually paying other people; seems pretty obvious right? Maybe not so much, if I add that while paying everybody, we mostly forget to pay ourselves. Yes! ourselves. We pay DSTV, we pay MTN/GLO… (multiple times in a month), we pay Shoprite, we pay Dominos, we pay Taxify, we pay Jumia, we pay the Government, even Dino Melaye (is our tax money na!). We pay everybody there is to pay, EXCEPT ourselves.
Don’t get me wrong, i’m not saying it’s wrong to pay all these people; I could definitely use some slices of Pizza as I type this (lol), if i don’t pay GLO, how can i even begin to blog? But you should pay yourself too. You deserve to be rewarded for the services rendered to yourself. You wake up early, you get stuck in traffic (Lagos people, how far?), you work your ass off, you get frustrated, you sleep late; and when the money comes, you still miss out, because you’re busy paying everybody.
Everybody deserves to get paid, likewise YOU.
Now, i’m being careful not to mention the word “savings”; the popular understanding of the word has become painfully delusional. Truth is you don’t have to set aside half, or quarter of your salary in the name of providing for the rainy days. In paying yourself, you decide how much, and it shouldn’t be so much so, that it deprives you of living a comfortable life.
Usually, Setting aside 20% of your regular income is standard (but who standard epp?). I dare you to start with 10% of your regular income! Nothing can be more convenient and appropriate at the same time. Feel free to pay the entire 90% to others, for your living expenses (i think, that’s as fair as you can be to yourself). Setting aside 10% of your regular income can almost make no significant differences that would cause any inconveniences (see that alliteration? hehe); and if you think it’s to small, then why haven’t you paid yourself more, all this while?
So, when that alert drops, when you make that sale, when you get that commission, make it a habit to pay yourself FIRST, before you think of any other person.
02. Control Your Expenditure
Now that we’ve agreed to set aside 10% of our regular income as payments to ourselves, don’t be a “buje budanu (wasteful spender)“; it is important that we protect it (our 10%) and ensure that it doesn’t get eroded; because, as small as it is, it could easily be stolen by our insatiable desires (They are bullies).
How do we protect it…?
Yes! A budget is one of the most overlooked POWERFUL financial tools today. We have no idea what that list could achieve for us. For a start, it can save our 10% from the bullies
that might kidnap it.
We need to budget our expenditure in such a way that, the remaining 90% of our income, is enough to cater for our needs and our substantial wants; and while at it, we also need to track our spendings; keep a record of every expense you incure and compare it with your budget at the end of the month/week. Before you buy a thing, or include an expenditure in your budget, ask yourself this one question,
“If I don’t buy it, what would happen?”
If we are honest enough with ourselves, more often than not, we’ll end up cutting down on frivolous spendings.
All that being said, you can have what ever you like (Remember T.I? LOL); as long as you don’t have to expend the 10% we have set aside.
So, you’ve paid yourself; you’ve controlled your expenditure; what do you do next? Find out in my next post. Let me know if you’re Keen. Also, subscribe to the mailing list for future updates.
Do you pay yourself already? is 10% too small? Do you budget? How has it been, keeping up with your budget? Let’s discuss…
Have a great week guys!
As seen on lifewithtwotees.