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FINANCE: 3 wise money habits

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Yusuf Boluwatife

 

 

As hard as it may seem for an average person to earn money, it is quite easy for the same money to disappear into thin air.

Here are three helpful tips on how to develop a good spending habit.

 

Have a budget

Budgeting, in simple terms, means having a good plan before earning money and sticking to it when the money finally arrives. This way over-spending is controlled or even eliminated.

 

Get to know your scale of preference

Scale of preference is outlining the important things needed by an individual. This helps you to keep an healthy spending habit. While setting your scale of preference, always place your “needs” which are important above your “wants” which are largely optional.

Simply put, let the basic things come first — food, clothing and shelter — before other “wants” which are secondary.

 

Saving

No matter how large or little an individual earns, it is advisable that he/she develops the habit of saving for unforseen circumstances, or for times where there would be poor cash flow.

 

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