Salary Week: How to Manage Your Finances

It’s every worker’s favorite time of the month again, salary week! 😍
After 3 years, 7 weeks and 62 days of waiting, finally, we can almost feel the excitement in the air.
We all have bills to foot, family to send monies to, debts to pay and for some, it’s groove o’clock! or is it??

While it’s okay to spend frivolously after getting paid your hard-earned money, try to think of better ways to use your money, after all, it’s hard earned, right?
Here are some tips on how to properly manage your finances in a way that you get to save, invest and still enjoy yourself. 

 

1. Budget or get burnt

Wait!
Just before you go painting the town red, create and set realistic budgets for yourself and prioritize paying fixed costs first such as essential bills.
Budgeting helps you stay in control of your money and allows you to keep a track of your expenses to avoid ‘stories that touch’. This strategy prevents you from guessing where your money has been spent. 

The 50-30-20 rule is also a great guideline you could use to efficiently budget your savings. Spend 50% of your income on your essential bills, 30% on your financial goals and 20% on flexible spending (yes, ‘flexing’ is allowed).

 

2. Watch Your Spending, Before Your spending Watches You

It can be easy to keep spending on depreciating assets, gifts, that box of pizza, that cup of ice cream, but these costs eventually add up to a much larger sum than you would realize.
One way to help you track your spendings is keeping a record for every purchase you make, every good bought, every service paid for no matter how little. At the end of the month, you can use your record to decipher if you spent more on nonessentials or not, and this will help you curb how you spend and what to spend your money on for the next month. 

 

3. Nobody Likes a Debtor

Stop robbing Peter to pay Paul!
Stop dodging your calls or skipping WhatsApp messages trying to avoid creditors!
Stop pilling up debts, you’ll only feel like a slave to creditors!

Consider paying off your debts as soon as you start generating a steady income stream. Plus, paying off your debts diligently affords you the ability to spend with more confidence knowing you’re out of debt.

 

4. Invest Your Monthly ‘Jara’ (Surplus)

It’s the end of the month and you’re left with a surplus, great!
You may find yourself with two options:  1. save & invest or 2. spend. 

Choice #1 has the power to generate more money for you in the future. It’s money from your salary that can add more weight to your existing portfolio. 

Choice #2 is your right because you’ve managed your salary well enough to have a surplus, but it’ll be money that’s gone forever if you spend it. Either way, investing the money should be the optimal choice.

 

5. Treat Yourself… Wisely o!

Don’t lie, we know this is the part you’ve been waiting for. Lol.

It’s easy to be harsh on yourself by cutting down on things that bring you joy. This could cause you to eventually give into the pressure and unnecessarily splurge. So, when budgeting, it’s important to leave room for some of those things you so desire.
Reward yourself with a fancy dinner or a short vacation when you reach one of your financial goals. 

Live a little.

 

After all said, we love to see everyone succeed and shine. Don’t let ‘sapa’ get the best of your hard-earned salary.
Work hard, play harder and work even harder… Las las, we will be alright. 🥰