Practical Ways To Stop Financial Wastages

Photo courtesy of telegraph

THE story is told of John, not his real name obviously, who had a good paying job and a growing side business. He lived alone in his 3 bed flat in the heart of Abuja and drove a latest model car, something people call a ‘machine’, took vacations at the slightest excuse, the funniest being, ‘Jesus is coming soon…so, live your life now!’ John had an infatuation for having the hottest…

…and up-to-date version of electronic gadgets. Since most of the contacts he got for his side business were from social circles and events, he frequently dined out and attended major social functions in the city and beyond. That was his argument. It is still a wonder how he managed to balance all his activities.

You can therefore imagine the surprise when John contacted me for help to deal with his financial struggles. I thought he was kidding until we started the counselling session. Indeed John was struggling. He struggled to meet up with his financial obligations, he seemed to be in perennial lack which on the surface is unbelievable.

In a session with him, we did a net worth statement analysis. This is an exercise I encourage you to do, and if you need help, please do not hesitate to get in touch. A net worth statement analyses your income versus expenditure. It actually goes beyond that to suggest practical steps to live free and happy, custom-made for you.

In analyzing John’s net worth statement, we saw the problem; John was spending more than he was earning. This seemed pretty obvious until you realize that anyone challenged by an unbalanced net worth statement would be quick to tell you that, ‘it is easier said than done’, in a way just like drug addiction.

Photo courtesy of usnews

There was an urgent need to rework John’s non-essential column and improve his multiple streams of income section, despite the perceived financial slow down. Heartwarmingly, John was willing to work on himself.

Let me share some lessons from John’s case study.

Learn to say NO! I know there is a popular brand that tells you to ‘just say yes’. Well it is time to just say NO! Say NO to things that don’t add up. You have to develop the mental discipline and capacity to say NO and stand by it. Again it is easier said than done. Thankfully, there are helpful practical exercises in this regard.

Cut or reduce and eventually eliminate your non-essential expenditure. These include cable TV subscription, clothes and shoes (having clothes is as important as where and when you buy them), holidays, entertainment, gym memberships and telephone bills. I can go on and on. For phone and internet bills, I always advice clients that unless your work is directly related to use of phone and internet subscription, do a downward review of your bills and reduce the number of handsets you have. Is it not curious that in many countries challenged by widespread poverty, telephone companies are among the richest corporate bodies in such society? People are just talking away.

Deliberately live below your means. There is wisdom in this. There are tricks I would like to share with you in a counselling situation.

Develop a multiple stream of income strategy. Experts say that to stay above water, you need at least 5 multiple income streams flowing into your river. A lot of people, including yours truly, are still working at improving their income stream, so don’t despair, just work at it. We will discuss this more in another edition.

John has reviewed his living and is elated. He has taken charge of his life and is on his way to recovery. Be like John; take charge of your life today!

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Whether you succeed or not, is really in your hands. Remember that when you set the sails, God sends the wind.

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