Live Within your Means This year.

The new year is here with us!!!!!!!!
What a perfect time to make a fresh start. At the beginning of year comes resolutions and goals. It is advised to make goals that are attainable to avoid frustrations. Well have you ever wondered why its not yet end month and you have no money left in your account.? If you lost your job today, would you survive the next three months to your next pay day? Are you the kind that borrows money when an emergency arises? Are you so much in debt and badly need to get off debt?

Well i don't know if you answered yes to any of the above questions but i do know each one of us needs to live within their means. I also do know that none of us likes to be in debts and we all want to be able to pay our bills comfortably. I also do know that we all need an Emergency account whose value you should strive to make it 3times your current pay. An emergency account ensures that should you lose your job you can survive 3 months on your own through your savings. The Emergency money should be in liquid form to ensure one can take care of the emergency.

An emergency could be an accident and you have to pay excess so that the insurance can pay up the rest. An emergency could be sudden hospital admission. However buying clothes is not an emergency neither is paying entertainment like DSTV. Define what an emergency is to you right from the day you begin to budget. All that i am saying is its important to save part of your income and the only way one can save their income is through knowing their expenses and planning for it. In as much as i said an emergency account should be three times your current income one needs to know that they have to have a beginning . Its through saving a certain amount every month that one arrives at the said target. Let me break it down in a simple arithmentic

This is how one can budget:

• Tithe 10%
• Rent plus Transport 40%
• Shopping 30%
• Savings 10%
• Miscellaneous 10%

The above is standard but depending on the size of the family one will realize that when it comes to shopping and Miscellaneous one can actually be in a position to save more than the stated 10%. When it comes to Rent ensure that the location where you choose the rent and transport doesn't go beyond 40% of your income. As for Tithe whether you take the whole 10% to church or give it to the needy is all up to you. Miscellaneous could be weddings, burials, outings you decide. Under shopping note your phone allowance is in that category.

If you start the year with such a plan and instill discipline in yourself. Believe me by the end of the year you will have disciplined yourself. There may be things i didn't consider like House helps salary but I believe the above provides a basic standard for each one of us to abide in.

 Above all commit all your new year plans and resolutions to God because in as much as we plan its God who executes . I will be glad to hear on any views you may have in regards to savings. There will be more on attaining financial freedom and advice on finances. So keep it locked to this blog.