After reading lots of books on Personal finance and Investment, I decided to put my vast knowledge to work. I currently work at a job I love but which leaves me with little money at month-end. I daily take a record of all my expenses; I know where every single kobo of my salary goes. I know exactly how much I spend in a month.

The following are the Personal Finance measures I implemented –

1. Pay myself first

Since 2011, I set up a direct debit order in my salary account to transfer a certain amount of money every month to a Mutual fund account.

Now I plan setting up two others to transfer some cash monthly to my Brokerage account and quarterly to my Fixed Income fund account.

2. Have an Emergency fund

I currently have my three months living expense stashed away in a High Yield savings account. I have lost my job once and resigned from another too. In both situations, I encountered numerous unplanned expenses and ended up spending a lot. Having an emergency fund can greatly help to tackle unforeseen emergencies. I never touch it unless there is an emergency, and I replenish it as soon as I can.

3. NSD, LSD and HSD

Increase your No Spending Days, never reduce your Low Spending Days and reduce your High Spending Days in a month. I try to achieve this by staying home on most holidays to increase my NSD, cut-back on unnecessary daily expense like chewing gums and in between meal snacks to increase my LSD, and I only buy necessities to reduce my HSD.

Recently, my Sony VAIO laptop motherboard went bad and I couldn’t find a replacement. Rather than buy a new laptop, I bought a similar but dead Sony VAIO laptop and replaced the bad parts with the ones in mine that fitted and bought the other parts that needed fixing. I ended up with another Sony VAIO that cost a fraction of the new one.

Anything I could do without for a month, doesn’t make it to my list. For instance, a new suit, iPad, another wrist watch and movies.

4. 70 – 30 investment rule

Since, I’m investing for the long term (over 30 years horizon), I put 70% of my investment cash in stocks and 30% in Fixed Income and bonds. As a small investor, I rely on fixed income fund. But I follow the stock market like a true Chelsea FC fan follows his club, I know nearly all the important figures and trends. I research stocks, burrow through financial statements from 7 years back and make some crazy financial calculations. I manage my own brokerage account without any professional help, I buy stocks of companies I’m convinced (after my calculations) will grow at over 15% year-on-year and sell the ones I believe have derailed (regardless of their stock price movement).

Result: Though, at first, I lost money after money, I have recouped all my loses and have found an investment style that works great (so far).

5. Delay my big expenses

I don’t plan buying a car anytime soon.

6. Create multiple income streams

Though, I currently make money from my investments, I still run 3 monetized blogs and a part-time consultancy. Currently, my blog is yet to generate a profit and my consultancy biz is still in its infancy, but I know that with more time and effort invested I will be able to cover my living expenses from their earnings.

7. I’m my biggest asset

The premium on skills (hard and soft) is huge. That is why our parents make us start school as early as possible, knowing that one day someone will be willing to give us a fat pay slip just... http://www.olafusimichael.com/2013/02/working-my-way-to-wealth.html

I would be happy to learn from you both as I am on a small salary but I try to make the most of it as I have really been working on my spending habbits in order for ne to make the most of these oppurtunity about going into stock though.

MIKE, YOU NEED TO GROW PASSIVE INCOME WHICH IS REAL ESTATE... YOU NEED TO LEARN ON YOUR OWN AND I WILL GIVE OPPORTUNITIES AS YOU DO SO.. FORGET NIGERIA REAL ESTATE AS YOUR LEVERAGE IS LIMITED... ONLY US MARKET MAKES SENSE FOR NOW...

@OP, PLS I WILL LIKE YOU TO HELP ME ON HOW I WILL MAKE MONEY IN STOCK,BONDS E.T.C? PLS I WILL LIKE YOU TO TALK ON ONE ON ONE TRU ihedioramma@yahoo.ca or 08095025817 THANK'S.