The process of managing your finances is a very important one. Wondering how so? Well, let’s take a walk down the memory lane.

Do you remember the last time you had a bunch of money in your pocket? You were strangely comfortable, weren’t you? There weren’t a lot of debts on your hands and you could spend freely.

However, as time went on, you started using the money and before you knew it, it was all gone. This is why you have to keep track of your money. Nobody will accept “abeg” as payment for services rendered or products purchased.

In this article, we’ll share with you a four-step guide to managing your finances. They are:

1. Understand your income and your expenses

This is the very first and the most important step. You need to know where your money comes from, how often it comes, what quantity you get on average, etc. When you figure all these out, you need to calculate your essential expenses.

Have you started paying bills? Calculate how much it costs you to pay all of them in a month, a quarter, or even a year. Crunch those numbers and get a calculator if you have to. If your income isn’t fixed and your bills aren’t either, you can do a rough estimate. However, it’s wise to estimate your expenses slightly higher than they actually are.

READ MORE: https://valourdigest.com/a-four-step-guide-to-managing-your-finances/