INTRODUCTION.
Many people complain endlessly about the salary that they are paid, is insufficient and that is, why they have a lot of financial problems.
I had to undertake a research to discover, if truly it is insufficient salary that is making people to have insufficient financial problems. My findings were interesting and I have come up with a solution that I will be sharing with you right now.
THERE ARE THREE STEPS TO SOLVING THE PROBLEM OF INSUFFICIENT INCOME OR SALARY THAT I HAVE COME UP WITH. AND THEY ARE:-
Cut down your expenses.
Live within your means.
Make extra income.
Before I start explaining, I will like to explain some facts;
FACT ONE:
Your salary/income can never ever be sufficient for you because human wants are insatiable.
FACT TWO:
If your employer pays you all the money in the whole wide world as salary, you can never be rich, I say it again, all the money in the world cannot make you rich, does not make you rich.
FACT THREE:
Not everybody can start a business or run a business. Many employees used to see the money flowing into the business or office of their bosses without sitting down to as well calculate the expenses their bosses incur aside salary paid to staff, before they conclude that they are not well paid.
FACT FOUR:
No matter where you work, be faithful. If your company does not pay you, I have found out that there is a way God will lift you above what that company is paying you and if you are not faithful and the company is overpaying you, God has a way of putting you out of the organization.
FACT FIVE:
No millions or billions is made in one day. Rome was not built in a day. Every big amount of money is made gradually. Do not be trying to make millions by trying to defraud your organization. Remember that whatever you sow, you will reap.
Back to my three money-saving solutions. It is important for you to follow them in that order of arrangement. If your salary is small, step one is not looking for extra income, it is to cut down your expenses. That will lead me to the first point.
CUT DOWN YOUR EXPENSES:
Write down your recurrent expenditure and check the ones that you could cut down drastically. Some people are collecting N20, 000 as salary and they use recharge cards of N7, 000 every month, take transport of N6, 000 and at the end of the day, the salary is insufficient. As regards to recharge card, once you start using anything above N3, 000 every month, you should change to post-paid plan. One of the reasons so many people become poorer faster is because they earn income from a source and they spend it through many means and they fail to cut down excessive unnecessary spending means that are not necessary.
Salary (Source Of Income) =Many Sources Of Spending It=Poverty.
Now despite the many sources of spending it, some still lose money through the listed means below hence they become poor faster.
MAKING UNNECESSARY PHONE CALLS.
An unnecessary phone call is a call made when you do not need to make the call. This includes calls made when you will soon be seeing the person and the matters you want to discuss can wait till you meet to explain face to face. These are very rampant among youths. Most youths who make unnecessary phone calls go poorer that you ever think. This is a way of losing money faster than you think because, is so easy.
MAKING PHONE CALLS WHEN YOU ARE ANGRY.
This also usually leads to waste of money. Whenever you are angry, you are not in control and you get careless about many things, at this point you lose a lot of money.
USING PREPAID THAN POST-PAID LINE.
Check how much you use monthly in terms of prepaid line, that is, try to keep all the recharge cards or vouchers you are using and see how much you use per month. Walk up to the telecom company you use or get one of their staff to help you confirm that, if you use the same number of money you use in prepaid for post-paid what is going to be the difference of minutes. Since January 2009, I started keeping all the cards we use in the office and the ones I use at home. I discovered that I have been using N45, 000 each month from January till March. I called a staff of the telecom company I use and he told me I could pay half of what I have been paying monthly and still enjoy more minutes. Isn't that a fantastic offer?
LEAVING YOUR HUGE SUM IN CURRENT AND SAVINGS ACCOUNTS FOR MORE THAN 30DAYS.
Any amount above N200, 000 should not be left in your current or savings accounts because, you can enjoy a good interest rate on the money if kept in fixed deposit account. All you need to do is just call your account officer, discuss with him/her how you could go about it well and start enjoying interest on your money lying idle in the bank.
CARRYING YOUR ATM CARD OR CHEQUE BOOK AROUND.
If you carry your ATM or cheque book around, this will lead to spending money regularly, even when you don't need to spend money. For you to overcome this problem just carry ATM or cheque book only when you have planned or budgeted what you need to buy and by so doing, you reduce the money you are spending.
NOT PLANNING YOUR JOURNEY BEFORE GOING OUT.
Anytime you do not plan your journey before going out, you spend more money than you are supposed to. Before leaving the house, plan.
LACK OF PROPER NEGOTIATION.
Anytime you do not negotiate, you will lose some money. I have negotiated more than half of the price of goods I needed to buy before. All you need to do is just have a mindset that you are going to negotiate off on the prices of anything you are going to buy, even in a price tag store where every goods are already priced and cannot be negotiated, ask for discount. You may be surprised at the positive response. Negotiate properly!
KEEPING MONEY AT HOME.
The more money you keep at home the higher the risk and more unnecessary buying or purchases and the more money you lose. Keeping money at home will do you more harm than good. As much as possible do not always keep money at home but rather open a bank account and save.
OVERSPENDING ON CEREMONIES.
Some parts of Yoruba land in Nigeria normally buy as much as three pieces of cloths for a particular ceremony. Overspending on ceremonies like; burial, naming, wedding etc. will only make you poorer. In fact, some people even borrow for wedding; what of when you are married, what would you do to survive?
Definitely, this will be to borrow more. The truth is this, you cannot die if you don't overspend on a ceremony, you will only be better off financially so why not make up your mind and cut your coat according to your cloth.
BUYING WHAT YOU DON'T NEED.
Some people buy as much as N50, 000 or more than phone when all they need is just a phone of N15, 000 to make and receive calls and SMS. Some buy computer of bigger and higher configuration more than they need or they buy what they do not need. Before purchasing electronics, find out what you actually need it for before buying it.
BUYING FAIRLY USED PRODUCTS WITHOUT WARRANTY.
There are some fairly used products with 12 months warranty; those are still good to buy. But there are some without warranty which appear to be very cheap, but in the long run, you spend more than you ever think you are saving. They include:-
Locally used cars.
Tokunbo (foreign used cars).
Brand new cars.
LOCAL USED CARS.
These are the cheapest, but sometimes you spend more money to repair and service them over and over again.
TOKUNBO (FOREIGN USED CARS).
These are cars that have been used overseas in countries that have good roads and therefore, there is less damage done both internally and externally. If you buy these types of cars, you spend little money for maintenance and servicing compared to cars locally used.
BRAND NEW CARS.
Buying a brand new car, though expensive, is the best option between the two types of cars mentioned above. In the long run, you see that you will be spending the same amount of money while buying locally used cars. Therefore, brand new car is the best option that is why; it is the most expensive one. These also apply to TV and other electronics.
BUYING SHARES WITHOUT UNDERSTANDING THE MARKET.
The market has its dynamics and some people are only interested in the money to be made from stocks without understanding the market. Any time you do this, you lose money.
BUYING PROPERTIES WITHOUT DUE DILIGENCE AND FINDINGS.
Anytime you buy properties without finding out the state of the properties or putting your papers in place, you lose money.
WRONG LIFESTYLES.
If you smoke, take alcohol or womanize, these lifestyles will lead you to poverty and you will lose a lot of money. Your wrong lifestyle can make you to be losing money more than you ever expect. Correct your lifestyle and you will start making it.
THERE ARE BASICALLY, FOUR AREAS OUR MONEY GOES TO AND THEY ARE:-
Necessities.
Desirables.
Luxuries.
Wastages.
While necessities are on transport, food, cloth and shelter, desirables are things that are not really necessary but make life more comfortable for us. Luxuries are a lot bit above our wants and needs while wastages are what we do not need at all. Record how you spend your salary for three months and it will show you the direction of your salary or income.
THERE ARE THREE WAYS YOU CAN LIVE WITHIN YOUR INCOME OR MEANS:-
Live within your means.
Live below your means.
Live above your means.
Anytime you live within your means and below your means, you will always probably live happily and get better financially.
Though it is not so easy, it will become a way of life after you learn to practice it for a while. Anytime you live above your means, you will always run into debt. If there is anything you should learn more, it is how not to live with or above your income.
Living within your means is a good way of breaking the cycle of insufficient salary/income.
MAKING EXTRA INCOME.
And finally begin to search for opportunities of making extra income without quitting your job. In fact, an anonymous person said that you need at least four sources of income to survive. Making extra income has so much to do with you seeing the opportunities around you and making the best use of them. There may be money where you are right now but, you are not giving attention to it.
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