Use Money Wisely.
Personal Financial Management involves key aspects of planning your income sources as well as where expenditure can be made.
One major tool to manage income and expenditure in one’s life is through the use of a budget. A budget is a plan that lays out what you will do with your money.
The nature of financial goals.
Financial goals can be short-term, such as
- Getting out of debt,
- Meeting day-to-day expenses without borrowing,
- Paying school fees,
- Saving for a special need or desire.
Or long term like:
- Saving for a house or retirement.
The three things you can do with your money.
- Spend the money for day-to-day needs such as food, housing, transportation, and optional expenses such as watching football, taking alcohol and others.
- Unexpected emergencies, unexpected opportunities, or meet short- and medium-term financial goals.
- Invest money in business ventures to earn income in the long-term.
Benefits of budgeting:
- Simplifies spending and savings decisions.
- Encourages careful spending.
- Facilitates saving.