managing our finances can be very difficult and most people who successfully manage their finances develop these skills over time and can do it because of the experience they have gathered and not because they are so perfect. so many people have access to information in the books of people's past experiences and information online in places like YouTube, but they still struggle to manage their finances simply because when it comes to managing finances feelings of want, ego, and also pressure mixed together in our decision-making.
even people with great experience struggle to manage their finances sometimes they spend on unnecessary things, even though they know it is not the right thing to do and it goes against the philosophy, they still have to do it because of human nature for instance saving to buy the latest iPhone, sometimes people buy items like that knowing is not right financial decision but they do it just to make themselves feel great and also they also want to feel important. This is the major problem most people have in finance how to manage their cash flow even after creating a good way to manage the cash flow how to stick with it.
Cash flow is a problem but most people don't know it.
we have people making substantial amounts of money every month, but at the end of the year, they have nothing to show for the kind of money that they are making simply because the cash flow is always on the negative side. the main reason this is such a big problem is most people don’t know how to handle the pressure, emotions, and ego that come with money. the reason why people find it difficult to save is because of the ego, they want to feel important by buying all the latest things in the world without considering every other aspect which leads to negative cash flow every year.
most people make a good amount of money every year, but they are not tracking their spending because they believe it is not necessary, if you can track the monthly spending you are shocked by amount of money, you are spending daily, and the subscriptions they are doing monthly. some of these things we are spending on are not our need, we are just doing it because we want to have a sense of belonging. Managing our Income in the right way and also being able to save and invest should be our goal, especially in Africa where opportunities are not permanent and can change at any time and without any savings or backup plan can jeopardize your life.
Track your expenses.
tracking your expenses might be the best you can do for yourself in 2024, simply because it is very difficult to track our expenses even though we have technologies that can help us to do that but We seem not to use them. We are focused on buying and spending most of the time without considering what we are spending on, whether we need it or not and the best way you can track your spending is by creating a budget and also dividing your money parts.
If you earn a salary it will be easy to create a budget because you know the amount you are expecting at the end of the month and to divide it into three or four will be very easy. You can do this by dividing it into three such savings, investing, and spending on your basic needs, you can even open a separate account and automate it. if you are the type that earns digitally maybe invest in Bitcoin or Hive blockchain like I do and also full-time hiver, you may not know when you’re spending too much and at the end of the year, you may not have a lot of savings. creating a budget and tracking your expenses will be crucial for you because it is easy to spend for someone like that.
Thanks for your time.
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You're right, cash really is a problem and a lot are very unaware man
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I agree that checking your expenses is important. You never know where you might be overspending so checking it can help you have a better budget and you will have more money leftover for other things such as generating wealth.
Tracking expenses is one of the best way to understand our spending habits and course correct the bad ones. Most of the time we spend money not out of need but out of desire, and this can be a huge problem when not addressed and solved, especially in the long run.