Part 2. Save or Slave? Tips on Managing personal finances and friendship
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| A pair of boxer only cost Kshs.300bob and you are taking her on a date for Kshs.2,000 #PutYourPrioritiesRight! |
Overview
Managing personal finances is not taught in schools. Budgeting within your income is a dilemma for most young people who are trying to build their future to achieve the so-called financial independence. There is a struggle between saving money and keeping friends. Not until this situation gets to a stalemate, you will never realize that you are only a slave in the name of being in the ‘mix’ of friends. If you cannot account for how you spend your money, other people will always be there to ‘help’ you budget for it. This, therefore, triggers the question; ‘Are you saving or being enslaved?’
1. Know where your money goes
Ensure that what you spend does not exceed your income in any way. Budget within your income. Do not entertain friends at the cost of your savings. Have a working budget before you spend luxuriously. This brings the issue of self-worth. Not that it is important to take care of yourself regarding your diet, shelter, clothing and other essential needs. Some people resort to making others live in paradise while they are languishing in a grass-thatched house in the middle of a desert. This shows how much a slave you are while making others your master. Let your monthly expenses be as small as you can and save for tomorrow. Do not struggle to buy a posh apartment while you cannot afford security details. Keep your finances and soon you will purchase the luxurious apartments before you even realize it.
2. Be sincere
Always be honest with your friends. Real friends will never abandon you just because you cannot afford to dine with them at a five-star restaurant. Instead, they can be flexible to incorporate you into their plans. Do not struggle to strain your budget to fit into friends plans yet you do not know how much their paycheck reads. Be yourself!
3. Do not assume you can afford things that will only lead to debts
Live within your limits. Probably your friend recently purchased a luxurious car or apartments then you sheepishly follow the trend. You will soon resemble a seasonal river, and it will be worse than terrible knowing that no rains are falling soon. Remember that some people may be sacrificing much than you can imagine. They could be willing to go to those extremes for a while in the name of saving for that first class car. Some may have landed well-paying jobs and would not feel the pinch in unleashing a new brand of their dream cars. Therefore, do not assume that you can afford it in a snap without proper planning.
4. Save to spend
Finally, if you want to manage better your personal finances, always save for what you plan to do in the next few months or years. You may be having a project to carry out with your friends, yet you may not have enough finances now. In such a case, do not just turn down their plans if it is something that will be of good to your life or investments. The best way to approach such a situation is to start saving before that day comes. However, be sure to benefit from what you are saving from lest it be a sinking ship.
In conclusion, the only way to save your money is by first defining your priorities and budgeting well. Avoid entertaining friends who will only ‘help you manage your money’ without caring about your well-being. True friends never quite no matter the circumstance!
