This year has been quite eventful on its own, full of new experiences, challenges and adventures.
A new phase of adulting is what it has been. One feature, that has been a prominent occurrence and my least favorite, is “financial worry” – having financial concerns, having to worry about money…
What I’ve learnt is how to PRIORITIZE, PLAN and BUDGET.
Choosing NEEDS above WANTS.
First settling your needs, your core, most basic requirements for sustenance.
Then, selectively dealing with, and handling your wants in order of importance. This also includes financial obligations (social and non-social) as well as requests.
For instance, choosing whose “asoebi” (wedding uniform material) to buy or not, when to do professional “pro” makeup or not, how often to eat out, take yourself out for treats… Or simply tell yourself there’s food (rice) at home. When to go for the premier of that mega blockbuster movie, or wait to download it online, when to buy new things, or stick to the old you have or simply revamp it.
A lot of it is deciding how many financial commitments to choose, or how much financial assistance you can offer others.
I’ve learnt that, planning ahead is quite key, to avoid a mess up or disappointment. Life is full of the unexpected, and unplanned events. I think and deem it wise to plan not just for the expected, but for emergencies.
I believe it’s important to spread funds, have emergency and backup funds, “not filling your eggs into one basket”. Having separate accounts for different purposes is a smart move. This also gives allowance for mishaps with the bank, funny ATM situations and other such instances that can leave a person cash strapped.
In a world that’s gradually evolving by the day into a cashless one, where financial transactions are either mobile or online, network fails are prone to leave a person stranded or helpless. Tips I believe can reduce the likelihood of such incidences include:
- Replenishing cash at hand with cash at bank before it’s completely exhausted.
- Having extra cash in your wallet than your planned expenses to account for the unexpected. Some might argue that this might tempt one into making impulse purchases. This is where discipline is paramount with the individual.
This one often proves to be a challenge in itself. As its one thing to budget, it’s another one entirely to actually stick to it and be disciplined about it, not budging from it, except absolutely necessary!!!
I find it helpful to work with a formula, use percentages to separate your money. It’s better written as well than let it just be a vague information in your head. There are also apps that can help with this, making it easier. Becoming a smart money adult is a process, a journey to stick with.
An example of such formula breakdown is as follows:
- 10% – Tithe (God first)
- 50% – Savings (Emergencies, rent, investment, projects… Etc)
- 20% – Food (Important for sustenance)
- 10% – Transport (Work and others)
- 10% – Leisure (As per, all work and no play makes you dull, and you came to this life to enjoy… 😉. Get creative with this… Not everytime splurge on outings, sometimes buy yourself something new and tangible. Give yourself gifts).
A huge chunk of adulting, is learning financial responsibility, gaining financial wisdom and basically becoming financially intelligent.
I’d love to hear from you how adulthood has treated you so far. Share some of the wisdom you’ve gained, the experiences you’ve had… Kindly make use of the comment section below and let’s converse 😀👇.
Love and Grace,
© Zizi 2019.