Life

How To Manage Your Income Properly

by Pooja G

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.

Budgeting

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

angry parks and recreation GIF

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.

Conclusion

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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78 thoughts on “How To Manage Your Income Properly”

  2. Save, save, and save!! Yes, I couldn’t agree more. People think I’m weird for being frugal but it’s frugality that got me to where I am today.

    My issue is figuring out what to invest in. My income sits in my bank account and I know it’s not growing there. Most of the time I don’t check my bank account (I like not knowing and letting it pile up) and I live below my means.

    Reply

    1. Absolutely, saving is so important. You never know when you’ll need that money.

      Yeah investing can be tricky but I think with proper research you’ll find the right thing to invest in.

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  5. I’m glad that you’re enjoying your work online. That’s a lot of great advice, Pooja. The cost of living is increasing at such a great pace that we have to save, save and save. And of course, after sticking to such strict budgeting, we deserve a treat at times. How have you been? It’s been a while since I dropped by.

    Reply

      1. You’re most welcome. I’ve been good too. I’ve finally managed to keep aside some time for blogging. I’m restarting the 6WSP later today. Hope you’ll be able to join in. I’ve missed out on so much during the last year. So I thought I’ll pay a visit to all my favourite blogs. 😄

        Reply

  7. I only buy what is needed, save, and plan ahead/budget for big purchases, and treat myself by spending time outdoors (it’s free 🤣).

    I’m happy to hear your work is going well! I can also see your images too. 🙂

    Reply

    1. Haha yes spending time outdoors is a fun and free way to treat yourself. I do that too and save the majority of what I make because I know I may need it someday or use it towards something I really want. Thanks 😊

      Reply

  10. Planning, budgeting and saving: all these are important factors in financial planning. One must learn to live within means, and be careful not to indulge in overspending. In this regard, I will suggest to minimize the use of credit cards because this temporary credit makes us spend more than we earn. So if we don’t exercise restraint, a vicious cycle may start and may land us into financial trouble very soon.

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  11. An interesting blog.
    I love how you are so efficient with so many diverse topics.
    This blog is very helpful. People need to see options where they can put money and get some benefits.
    The pics are visible but not very clear. The pic of girl in glasses is not clear.
    Also, Hi

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  12. The inflation prices are crazy.
    It’s best to think twice before spending money.

    A lesson I haven’t learnt unfortunately, when it comes to buying books 😅

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  13. Amazing post, Pooja. Thank you. I’ve been thinking about working online. Not exactly sure how to start, yet this helps 🙂

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  14. You are sooooooo right about it. My experience is that I can budgeting fine and lay out money for the absolute essentials, but I have problem with the rest. I have some kind of compulsive

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  15. Sorry, the comment is sent without my consent. And I can’t change it. Well, continue with what I was saying above, that I can be obsessive on certain things and can waste money on items that quickly become useless. I think budgeting and having a strategy to lay out one’s plan to spend disposable income has the purpose of make one enjoy life even more, but my habit of spending doesn’t not give me the pleasure I think I can get . It is very strange, knowing that one’s hardwork hasn’t brought the expected enjoyment…

    Reply

    1. I know how you feel, I had the same issue when I started out. I think saving is the hardest part and yet most necessary. I think having a goal and using the calculator I linked to keep with the goal has helped me a lot.

      Reply

  17. Budgeting is so important now with the rising costs of everything. In terms of saving, it’s also important to know what types of financial investments to put your money in. What made sense last year doesn’t make sense now. So many changes…

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  23. While I am quite the saver, I don’t scrimp on things that I genuinely need and are valuable. My classic example is insurance. I always get the comprehensive insurance because if I don’t and something happens, I will be in worse shape in the long-run!

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    1. Yup some things are definitely worth the money! I think food is another one. Eating something cheap but extremely unhealthy isn’t really worth it. I don’t spend a lot on things I don’t need but I try to buy good quality food.

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  24. Really a very wonderful and awesome post Pooja. Your posts are so amazing and so extraordinary Pooja. They are always so appreciative. Just keep posting dear.😊💞👍

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  26. Great post and great advice! Even though I am now much more comfortable financially than when I started working, I kept some habits from when I didn’t make a lot of money and I always put into savings part of my salary. I’m also lucky enough that my retirement money is directly taken from my salary so I don’t have to think too much about that!

    Reply

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