What is the possibility of making one’s salary last longer, especially with the harsh economic realities we’re facing in the nation? Take Sandra for instance. With her N350,000 salary today, she has to cut down on many things to keep up with her responsibilities. Mind you, her parents are retired and she has two younger siblings who are both university students. However, she manages to stay afloat each month without running into any debt.
What magic does she pull off? Below is how Sandra is able to keep up with her numerous bills while still ensuring her salary lasts longer than expected.
1. She knows how much exactly she earns.
This is where it starts from. Sandra knows how much she earns every month from her job; she keeps track of every income that comes even outside her regular pay check, including cash gifts from friends and family, This has helped her with planning and budgeting.
2. She budgets and plans
That’s the next secret. People who don’t plan how they’ll spend their money most times end up either overspending or ‘misspending’. When you start drawing up a budget before money comes, you’d realize how it helps you set the right priorities against when the money comes. This way, you find yourself making smart spending decisions thereby ensuring your salary lasts longer.
3. She has an accountability system:
Yours could be a friend, spouse or mentor who can ask you anytime about how you handle your money. Sandra’s boyfriend does this for her. Sometimes we all tend to slack off on our commitments, having someone who will ask tough questions keeps us on our toes. This would ensure you don’t spend beyond what you should.
4. She has a savings plan:
Some people would tell you the reason they don’t save is that they don’t earn enough. The truth is, ‘earning enough’ is a myth; we would always want to earn more, no matter how much we currently earn. The habit of saving can be easily developed when the previous steps are in place. Most people who seemingly can afford rather expensive things do so because they plan and save towards them. You can key into the road to December plan to earn 20% per annum for every amount saved.