Do you know how to manage money? Do you even know why we need to earn and hold money? We need to keep money for transactional reasons (usual daily spendings), speculative reasons (investments to make a profit) and precautionary reasons (emergency). Now let's look at Mr Ben's monthly financial report below;


Mr. Ben works temporarily for 10days (8am-6pm) a month. He earns $75 monthly, but spends about $100 (i.e. 133% of his total earnings). Here are the little details of his spendings.

* Food: 22%
* Transportation: 15%
* Booze: 15%
* Savings: 0%
* Toiletries: 3.95%
* Girls: 5%
* Internet subscription: 5%
* Phone call credit: 4%
* Haircut: 2%
* Tithes/Alms: 1%
* Debts servicing: 15%
* Others: 12.05%

What can we deduce from Mr Ben's haphazard spending?

1. He is a lavish spender.
2. He does not save which is stupidity.
3. He is stingy (Lol no tithes/alms).
4. He spends too much on booze (eh too bad).
5. He spends more than he earn (debt will surely kill him someday).
6. Can we say he eats too much too? (Lol he is surely a foodie).
7. He is living salary to salary. (Really bad, what if he loses his job?)
8. Well he does not like girls (Lol he is just been stingy).
9. He is not an investor... e.t.c

What advises can we give to Mr. Ben on how to properly manage his money? Mr. Ben must learn to;

- Establish himself financially.
- Understand his income.
- Manage his income.
- Start budgeting.
- Save money.
- Review and understand his debts reports.
- Prevent and detect any identity theft affecting him.

Final words to Mr Ben and You Reading:

You must teach yourself to "spend a little now to save a lot later". (Save immediately you receive your income, not after spending because after spending- you will realize there is nothing to save).

You must learn to manage your money the proper way because that is the most important step towards taking full control of your life.

So Mr. Ben and every one of us must understand where our money is coming from, where it is flowing to and how to make sure that we manage the money in such a way that reflects the values that matter most to us. Now look in the mirror and say to yourself, "I will learn how to manage my money and take control of my life."

"This is Mr. Ben, he likes to eat and drink booze a lot, give no alms, pay no tithes, always borrow money, spend lavishly, no savings and a complete a**hole (excuse my French). Do not be like Mr. Ben "


http://www.rapportnaija.com/2016/05/do-you-know-how-to-manage-money-look-at.html