Oudney's Studios

One big challenge most people have is lack of discipline. As simple as it may sound, not many have mastered the art of controlling themselves. Whatever one's aspirations in life, the lack of discipline will never let any indisciplined person actualize their goals.

I am glad to tell you, my friends, that one doesn't have to take a degree course in banking, finance, economics, accounting, etc at the university before they can manage financial resources well. Let me share briefly with you some tips on effective personal finance management.

1. The right perspective: The right knowledge and understanding is crucial to anything. You must have a balanced notion of money. The subject money means different things to different people, hence the different individual outcomes in our finance management prowess. Money, among other things, is a means of investment. That's why the business people invest it from time to time.

2. Set and pursue a financial goal: No matter your income, have a yearly financial goal, broken into a monthly achievable target.

3. Cultivate the habit of savings: Learn to save something out of your income no matter how little it might seem. We do not all have the same financial strength, however, we can all save.

4. Live by a budget: Whether as a single or family person, you must live by a budget. Budget helps to control our spendings. People without one spend recklessly, and most times on impulse.

Effective Personal Finance Management with Oudneys Studios

5. Be self-disciplined: Self-discipline helps to control our emotions and actions. Disciplined folks don't spend on impulse. They don't seek to impress others. They don't purchase what they don't have need of. Their spending is timely and purposeful.

6. Don't compete with others: There is no need competing with others. It's unhealthy. All you need to do is to define your financial goal and go for it.
7. A saver is always better than a wasteful spender: Many years ago I went to a microfinance bank to make a transaction. There also was a young man who wanted to pay into his account a paltry sum of N2,500. While looking at him, an insight came to my mind, "savings is savings no matter how little it might be". What that young man did is actually what many of us are lacking. "I will save when I have enough" is the excuse we all give.

8. Don't spend beyond your means: A person earning $5 000 that saves something out of it, is better than the one earning $1,000,000 without any savings year in year out. Or better still, the one who earns $5 000 and can save $2 000 out of it is better than the person who earns $200,000 and can only manage to save $10 000 monthly.