Access your financial situation
Learn the skill of managing your money.
First, you have to know your monthly sources of income after tax and other deductions are made.
Some people have another source of income as their paystubs such as allowances from family and friends, profits from business and monthly bonuses.
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Track your expenses for two months
Have a small notepad or create a memo on your phone and write down every item your purchase monthly for at least two months to make a valid analysis of the things you need every month.
This will be much easier if you use a credit card to buy everything you need for the next two months. Then assign each purchase under a category such as health, clothing, groceries, transport etc.
Evaluate
Once you know where you are investing your money, you can decide on how to cut your expenses by 90 percent. Save the balance for the financial project you deem most important.
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READ ALSO: 8 ways to save money on toiletries
Revise if needed
Always track your expenses and source of income to make sure you don’t overspend and save enough for future financial uncertainties.
After some months, you discover that some of the goals you set were unrealistic. It’s totally okay to ease them slightly or rejigger among categories.
Often it takes two or three revisions before you achieve a budget that you can really stick to.
