When it come to finances, Even some of the few that think that they have it all figured out still make mistakes sometimes. We have Some people who are making enough money to take care of their needs and still be able to save but they can hardly feed talk less of saving. While we have some who are not making enough money but are able to manage well, feed well and even save a little.
From my angle, it's not just about planning alone but to have strict measures to be followed always, apart from emergencies. When it comes to finances, there is no hard or fast rule apart from discipline. The months that I make extra money are the months I go broke faster. Why? Because I always feel I have extra and it makes me spend more than usual. But with financial discipline, I no longer have to worry about that. I make plans for my income including the extra.
I am not a person that spends without reasoning. I still think that I'm prudent to an extent because before I buy anything, I use to classify it, if it's a need or a want. A need is a necessity that is very important to my life and wellbeing while a want is something that I just like and want to have. It doesn't add anything to my life or safety. After considering this, I then go ahead to buy it or ignore it.
My kids school bill for this term was way beyond normal. I was really confused when I saw it. The bill was over fifty percent increase. The school listed a bill for graduation party, children's day party and excursion. The amount for graduation party was about fifty thousand naira. I can't imagine having a party for that amount for both of them and I'm still going to buy the clothes and shoes they would put on for the day.
I took my time and sat down to do the plus and minus and how it may affect my finances for the month before I make any decisions. I realized that it would affect our budget for the month and I didn't want to deprive the children of the party and fun, so, we made plans for it to fit into three months budget and it worked.
We have settled the school fees and all necessary bills. The only thing left is the party fee which would be paid next month.
If I want to be rigid, I would just discard everything party but I decided to be a bit flexible and make my plans that way to give room for the kids too.
So, the things I do is make plans for each month and also plan for miscellaneous and when I'm confused about two issues, I use the scale of preference. Picking the one that is most important at the moment.
In conclusion, making plans with strict discipline helps to achieve ones goals. You must also be able to differentiate your needs from your wants so that you choose your needs before your wants.
This is my response to Hive learners community weekly featured contents on the topic: Financial Literacy
Thanks for stopping by, I really appreciate you.
Photos used are mine
Yours truly 
