Being prudent with scarce resources is a skill that though inborn but can also be acquired. It is worthy to note that people who are born with some of these prudent skills can survive in nearly all financial times. These skills go a long way to help them optimize their scarce resources against all odds.
There are these norms with people going broke before the end of the month especially the salary earners. Some of these salary earners are senior government officials, civil servants, and even students are not left out.
They, therefore, go borrowing before their salaries are paid. The most worrying aspect is that some of these people are well paid but due to the fact that their expenditures are greater than their income they always go borrowing.
Some of these financial skills when fully mastered can help a lot in managing one’s finances. Some of these personal financial skills include;
Budgeting: Budgeting simply means drafting out a system of inflow and outflow of one’s incomes and expenditures within a stipulated time frame. The aim of this practice is to guide the person and for one to easily monitor, and control one’s expenses.
Budgeting also serves as a financial forecast that projects incomes and expenses. The great thing about budgeting is that at first, it seems boring but when fully optimized helps at the end of the day.
There are a lot of mobile applications that can help to budget and thereby saves time. One of such is Reach. Reach can be downloaded from the Google Play Store.
Budgeting doesn’t entail boredness but helps to guide that you mustn’t buy everything at all times but can forego some things based on one’s opportunity cost, needs, and wants.
Read Personal Financial Books: Reading books are not only great but also highly recommended. If one wants to fully optimize scare resources then imbibing a reading culture is the way forward. Personal financial books such as The Richest Man In Babylon, Rich Dad Poor Dad, The Millionaire Nextdoor are great. Others include; The Billionaire In training, Your Money or Your Life, You Are A Badass At Making Money amongst others.
Have Another Source of Income: To have another source of income will also help to cushion down some expenses. One may budget and channel some of his/her expenses to some other income instead of depending on the salary alone.
Investment Wisely: There is a lot of secured investment that one can invest in. These include; The FGN Treasury Bills, Bonds, stocks, real estate amongst others. These investments will be returning dividends periodically to investors.
Monitor Your Daily Spendings: Your daily spendings will make or mar you that’s a fact. If you want to fully optimize and utilize your incomes like an expert then you have to master your daily spendings.
Different Between Needs and Wants: Differnting between needs and wants and finding a balance between them will save you a lot of things including money. This means that you won’t be buying things that you don’t need amongst others.