Do not allow financial commitment overwhelm you

Michael

Staff member
Administrator
UF Member

Many times people find themselves in financial quagmire irrespective of how much they earn.

Financial commitment which are not luxuries or extravagant expenditures seems to overwhelm them.

Lack of proper planning, late planning, lifestyle or ignorance about financial organisation can put one in this situation.

Lack of proper planning could lead to financial stress. It is one thing to plan and it is yet another thing to plan properly. When you put the cart before the horse you have expended some energy and may not be far different from the person who failed to plan at all. To be different from the person that never plan at all you have to plan it right.

Apart from planning right an early start is key to saving yourself financial pressure. Putting plans to pay your bills on time will go a long way in reducing the burdens of paying additional money as penalties on bills not paid on time. Paying your electricity bill on time will save you additional cost you have make to reconnect electricity.

Budgeting is another way of avoiding been overwhelmed by financial commitment. Making a budget to so many people seems to be an uphill task. Budget is simply allocating money to different items to be spent on considering how much is your income. You can simply write down what you want to spend on, allocate money to them as you do not need any professional training to make a personal budget.

Trimming and tracking your expenditure is necessary in order for you to manage your resources effectively and ascertain how you spend your income.

A periodic review will help you know how you are faring with your finances. You can decide to make this review weekly, monthly or quarterly and ensure that you follow it up to assess your performance to see how to step up if there is any deficiency.


Source: Businessdayonline
 

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