How To Manage Your Income & Make Progress Financially


A common question my clients ask when we sit down to discuss about financial planning with focus on family goals, children's progress, and retirement aspirations is "Chris, how do I 
manage my income with all these bills I always have to pay?“

This is the simple tip I give them, which they find to be very effective - but before I talk about it, here are some things you should consider:

1. If you worry about it, there's a 90% chance that you can fix it.
2. The foundation of financial progress is constant earning and saving. 
3. Financial success is in how much you keep & give, not how much you spend.
4. Life is about giving and receiving. 
5. All through your life you will pay money to other people in the form of taxes, bills, fees, and charges; but the money you save and the assets you keep is how you pay yourself. 

Now here's the tip.

1. Make a list of all your weekly necessities (not wants) and calculate how much you spend every week and every month on them. For example: Food, Transportation, Air time, and Data subscription are necessities because you need them almost every day of the week.

2. Decide on the minimum amount you want to have saved for emergencies every month e.g. hospital bill, quick repairs, and unexpected expenses.

3. Decide on the minimum amount you want to have saved for fun every month e.g. hang outs, new experiences, and charitable donations.

4. Decide on the minimum amount you want to have invested in either businesses, securities (stocks & digital assets), or new skill sets every month.

5. Decide on the minimum amount you want to pay yourself every month.

6. Apportion your monthly income into the 5 segments above.

OR

Let's say your weekly, monthly, or annual income is 100%

Let:
Your necessities & emergency funds take 40% of your income
Your personal savings take 20% of your income 
Your investments take 30% of your income
Your wants/unexpected expenses take 5% of your income
Your charitable donations take 5% of your income.

I hope this guide helps you to effectively manage your financial resources.

#BookOfChris #elileojoblog #ChrisOfCreativity

Christopher is a brilliant content writer and digital marketing executive who enables brands to connect in a human way with their audience on the internet. He is also a trained investment advisor, with a passion for helping people secure and maximize their financial resources.

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