It’s true that budgeting helps you manage your fund effectively there wouldn’t be regrets after spending, but the question here is how do we budget? After making so much money, the next most important thing to be considered is the discipline that is required while handling money. If you do not know to manage your funds , you are not likely to get more , but if otherwise , you are highly qualified for more.
A budget is planned spending. It helps you to tell your money where you want it to go rather than wondering where it went and also helps you develop a savings plan.
ALSO READ: HOW TO SPEND MONEY WITHOUT REGRETS
Begin to keep a weekly, monthly and annual personal financial statement where you can document all of your income, expenses, assets and liabilities before and after spending money. It is very important.
A dog gives us 3 things
1. Dog provides security
2. Dog provides comfort, you play with your dog and feel cool when you take a walk
3. Dog brings money when you breed to resell.
That’s exactly what budgeting does for us
It provides security
It provides comfort
It increases your money
Now let us go into how to manage money or how to budget
When you receive that pay check, it is important to use the 6Jar formula to budget your Fund.
1. Giving Jar: This jar should contain 10% of every income, your 10% of your income is not yours, it must be given out, Christians pay tithe Muslim call it Zakar Or you give to charity.
In the holy bible Malachi3:8-10 talked about this , not paying tithe as a Christian is like robbing God.
That’s why companies have what they call CSR (Corporate Social Responsibility)
They realised the more they give out, the more it comes, it is written, give and it shall be given unto you (Luck 6:38)
2. Freedom Jar: This jar should contain 10% of every income you make. The money in this jar should be set aside for financial freedom.
Like I said yesterday stop saving for rainy days, save for freedom days. They money in this jar is set aside for your freedom, keep it in an account you don’t take out only deposits are made here. It is pay yourself first , in the book , the richest man in Babylon, it was stated that a part of what you earn is yours to keep. Anytime you wish to withdraw from this jar it has to go into investment and investments are assets( things that puts money back into your pocket.
3. Project Jar: This jar should contain 10% of every income you make. The money in this jar is to be set aside to take care of personal project You want to buy a car, plan it, you want to change your house outlook plan it, budget for it, you want to change your wardrobe plan it Stop impulse spending Haven’t you noticed you hardly get money out of rich people. There is this common language that rich people are stingy….. hahahaha that’s not true.
4. Education Jar: This jar should contain 10% of every income you make. The money in this jar should be set aside to take care of educational materials, Intellectual properties is an asset an once you’ve been able to feed your mind with great skills , your mind will definitely feed you pockets The greatest illiterate of our time are not those without degrees and certificates but those who have shut their minds to learning and improving their lives My own version of certificate is called SABIFICATE because you don sabi am, Nobody can beat it out of you with a baseball bat and you forget. Readers are leaders Confidence breeds competence and your competence feeds your confidence
5. Play Jar: This jar should contain 10% of every income you make. The money in this jar should be set aside for play Learn to give yourself a treat, give your family life. It doesn’t mean you must spend much, get out of your environment once in a while, turn off that mobile device and reflect on life experiences with your loved ones Go to the movies, go our take a bottle of drink, relax and forget a little about the hustling You need to learn to rejuvenate your inner self.
6. Necessity Jar: This jar should contain 50% of every income you make. The money in this jar should be set aside for your recurrent expense That’s where you spend on Etisalat, Glo, MTN, barber, estate security, pampers, school fees, feeding, iya Risi canteen ,DSTV etc Your recurring expenses emanates from here.
Now let me tell you the beauty of having these Jars
When you budget, you will discover the cash in hand isn’t enough to take care of your living expenses. So that puts you under positive peer pressure to identify other sources of income. In my next series of post I will teach you how to identify more ways of creating income for yourself.
Business intelligent strategist (BIS)