Business Times

We must all agree that money will never be enough. But it is also common sense that what we have is enough for us to spend, but the question would be how you spend it to make sure it satisfies your financial needs.

Well, you need to understand that while thinking of how to allocate your money, don’t be taken up by what society or people expect you to be having but rather the  need in your financial life, no matter how crazy it would be presumed by people.

So how do we now allocate our earnings?

Firstly, have a financial plan with a detailed budget showing your main earnings- salary and other incomes which may include day-to-day tips or per diem, bonuses and gift money.

Then make a list of your needs against your earnings. For instance, if it is a month, see the needs you need to cover up, for example, water, electricity bills, then look at those that may be needed every or two.

In most cases, there are always hidden expenses we always ignore which end up eating into our earnings; those also need to be looked at, for example, buying a drink for a friend, buying airtime to make a friendly call, going out for a concert, or giving credit to a friend.

It is those hidden expenses that may be catered for by your gift money, bonuses, per diem, if may be the remaining may be be put on your emergency fund that caters for the unexpected expenses.

In financial perspective, many a people look at these hidden expenses as a waste of money and don’t always include it on their financial plan but still spend on them. Remember they are part of your life and need also to be tended to.

Then, look at  long term needs which may include something that would need much money than you have right now. This means you will be having little to save. If there is nothing left to save, don’t panic. You can always postpone that project but don’t ignore it.

Again, ensure that your short time needs especially those that may last for a month are not moved to another month. Only those that may need a lot of funding from your savings.

You must understand that your success in your life will be determined by how you plan your financial life which must be entirely on what you need, not what you think others have or what a successful person should have. Take control of your financial life.

Contact email: Dias.nyesiga[at]newtimes.co.rw