Managing Your Income Properly
As many of you know I’ve been working online for most of this year. I am absolutely loving it because it does give me a lot of freedom that I would not getting had I been working in person. I also really enjoy it since I love what I do and it gives me enough time to work on my blog. Plus, I get to work in my pjs which in my book is a win.
One aspect of working that I did not think about too much was how to manage my income properly. I think I just assumed I would know how to. Turns out managing money is not as easy as sitcoms make it seem. Sure, I should not have relied on sitcoms but to be fair I have learnt so much from South Park and The Simpsons.
Back to the point, managing your income properly. I know it can be tough especially these days when prices are so insanely high. I don’t know about you guys but things are costing an arm and leg here in Kenya. That’s why I thought I would stray from my usual topics today and write a post about finance. I thought a post like this would be helpful for people trying to figure out how to better manage their income properly. This is what I’ve picked up in the last few months of being a freelancer:
Have A Plan
The first and most important thing I think everyone should have is a plan. Not just with finances but with life too. But back to finances, it’s important to have at least some sort of plan. Know how much (at least approximately) money you have coming in that month and plan your month accordingly. This is similar to having a budget but not exactly the same. This is more just to give you an overview of the month and will make budgeting a lot easier.
Now on to the good stuff (this may be the most adult thing I have said ever). Budgeting is so vital and so important especially right now with inflation rates as they are. As mentioned earlier, have a plan and know what’s coming in and going out each month.
Then figure out what your exact fixed expenses are (like electricity, WiFi etc) and deduct that from your income. Whatever you have left, you can use to spend on things you need. Calculate how much you will need for those things and figure out a realistic budget. For example, think of how many groceries you will be buying that month and put aside the amount you will need for that. Have a realistic budget set for everything so that you don’t overspend on something and end up broke at the end of the month.
Budgeting sounds lame or boring but it can really be a lifesaver. It will stop you from spending money on unnecessary things.
Save, Save And SAVE!
One thing you definitely want to do with your monthly income is save. It’s okay even if you just save a tiny percent of it but save something. If possible because I know times are rough for a lot of people. This money can really add up and help you in the future. For example, if you are thinking about joining college you can use this money for that in the future. And these days you can even use online calculators to calculate the exact amounts you need, how much you will have to save monthly and more. Or you can choose to save the money for retirement which I think is a very wise option.
My advice would be to use a savings goal calculator and create a monthly goal that you can work towards. You may have to sacrifice some treats at the time but will get a better treat sometime in the future. And you will have better financial security.
Treat Your Self
Last but not least, remember to treat your self. Even though it’s important to budget and save life is still short. Don’t spend all your money but do spend a little on yourself. Treat yourself once in a while. Whether it’s a fancy meal once a month, that cute crop top or those shoes.
I hope you found this post about how to manage your income properly informative and helpful. How do you manage income your property? Do you budget and save? Let me know in the comments below because I would love to hear your thoughts or simply stop by and say hi! And could you please let me know if my images are loading correctly on the Reader, apparently they haven’t been and if it’s a glitch I will have to deal with it.
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