After I graduated from high school, I enrolled in a one year program far away from home. It was the first time I left my parents’ home and it was also the first time I had a roommate. My roommate had a concerning behavior. By the end of every month, his dad would send him his pocket money. This money was meant to cover his expenses throughout the next month. It was like a salary and his dad was always consistent with it. Whenever the money landed in his account, he would start spending recklessly. He would finish the money in less than 2 weeks. For example, if his dad sent his money on the 26th, he would have finished it before the 10th of the next month. The remaining days of the month would drag slowly for him and he would suffer. By the end of the month when he received another pocket money, one would think that he would have learnt his lessons, but it was always back to square one.
One thing about money is that it has a way of disappearing faster than we expect. You might think you have a lot, so you spend freely without much thought. You satisfy your wants and buy everything you lay your eyes on. Little by little, the money keeps going. Then one day, you finally decided to check your balance and realize it is almost gone. Then you start to wonder where everything went. This is where budgeting comes in. Even when you feel like you have enough money that can last you for the whole year, it is still important to budget.
Unlike my roommate, I was different. I have always been different. I learned the art of saving and budgeting from a very young age. It started long ago during my elementary school days. Then, it became a part of me in high school, and it really helped my financial life in university. I believe that this habit was influenced by my dad. He didn’t directly teach me, but I watched him while he lived his life, and I picked up a few things.
One of the things you need to know for a healthy financial life is that emergencies can come at any time. And to stay on the safer side, it's better to have something saved up. This is how I do my thing; every month, I save about 20% of my earnings. There’s no fixed percentage. Sometimes I do more than that and sometimes I do less. The remaining 80% shouldn’t be spent recklessly. If you can, make a list of the important things you want your money to go into. For example, you budget 5% of your monthly income for data subscription. This might seem rigid, but living life this way has proved to be way better.
In everything I do, I try as much as I can to budget and save. It's a simple habit that contributes to a healthy financial life.
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Thanks for reading.
