One day, I got angry and told myself enough is enough. The reason why I said so is because I realized that despite how hard I work, I don't know where my money is going. The way my money is disappearing, sincerely I don't know.
To satisfy my curiosity, I decided to track every penny that goes out of my bank account, no matter how little
I decided to take this approach because I know how hard I work for my employer. It won't be nice when I don't know where my money is going.
I don't spend much. In fact, I am very reserved. I say no to so many things to the extent that my friends and family looks at me like someone that is very stingy. To be sincere, I am not.
Though, they never told me one on one that I am stingy but their body language says it all especially when we are to do things together that will cost money and I try to avoid it.
After tracking my Money for 60 days, I discovered where my money was going and trust me, you won't believe it.
How I Realized I was Lying To Myself After Tracking Every Penny For 60 Days
You know I told you earlier that I don't spend much and I was a reserved person. This is what I believed strongly but it all turns out that it was a lie.
Personally, I thought just because I don't spend money anyhow and just because I say no to many things, I am financially literate.
Well, the reverse is the case. There are some other things that are taking my money which are even far more dangerous than what I was avoiding.
Some of them are as follows;
A. Transport Fare: There are some areas that are trekkable but because I don't want to stress myself, I am always boarding motorcycle or cab to those places. I never knew doing this almost everytime has a strain on my finance.
B. Refreshments: I realized that in a week, I ensure I take some refreshments at least 4 times in a week. Anytime I do this, I always have the mentality that I have worked for this money and so, I must enjoy it. Of course, I should enjoy my money that I worked hard for but not at this stage because apart from the salary, I don't have any other source of income. All the money in my hand should be going into investments or savings.
C. Airtime & Data to close friends and family: I have a few number of people among my friends and family who request I assist them with either airtime or data. Most times, I always help them. It was during when I was tracking my money for 60 days, I realized this is also one of the things that is swallowing my money and making them to disappear.
D. Helping Family: Even when I say no to others, I find it hard to say no to my family. This action alone is having a big strain on my finance and doesn't give me the liberty to save a penny.
Every statements like "Brother, gas don finish" or "My son, your brother wants to enter school, he needs 10k for admission form" or "Brother, I need money for handout" or "Brother, Food don finish" and so many more.
While I attend to all these needs, it has a big strain on my finance to the extent that I have nothing to show despite the fact that I am working hard. It was during these tracking of every penny I realize this is also one of the major ways how my money disappear. This is more reason I end up in debt every month.
Each time, I was always budgeting like a single man and spending like a family man.
E. High Subscription: You know most times, if you want to subscribe, we have different types of subscriptions. You have some that you will pay little but might not be able to access somethings while those which you pay higher, you will be able to access all features.
For my Gotv subscription and Dstv subscription, I often go for the higher plan simply because I want to watch football and other sports. Little did I know that I was causing more havoc to myself.
Here are the breakdown of my expenses after 60 days.
- Transport fare: N40,000
- Family or Urgent Giveaway: N30,000
- Food: N100,000
- Data/subscription: N20,000
- Miscellaneous: N20,000
Note: The total money I spent for those 60 days is N210,000 while my salary per month is N100,000 and if we are to multiply my Salary by 2. Then I earn N200,000 within those 60 days.
This simply means that at the end of 60 days, I am even running on a deficit of N10,000 which I would have to pay from my salary the following month. This is not the right way to live.
A man who wants to invest or be financially disciplined must not live above his means. Despite the fact that all these things looks so important and necessary, there are still some of them that can be adjusted as long as they are not needs. Some of them are just wants.
What I Plan To Do
1. Transport: I plan to trek some distances I can trek. Moreover, walking is a form of exercise. As long as I am not late or in haste, I will ensure I walk some distance so that the transport fare can be cheaper because I have covered some distance.
2. Family or Urgent Giveaway: I have budget that if I want to help any family members or friends per month, I must not spend more than N20,000. Once the budget is above N20,000... I will tell them to wait till the next salary.
By doing this, I will be able to protect my finance and also be in a good relationship with family and friends.
3. Food: I tend to limit or stop eating outside or buying junks. I want to start being serious with home made food. This way, I will be able to eat well and spend less.
4. Data/Subscription: Data is life but If not curtailed properly, it can one's finances badly.i plan to budget a certain data for some number of days. Once I exhaust that data before the budgeted day, that is it. I won't be subscribing until the next day I plan to subscribe.
5. Miscellaneous: Yes, there are some miscellaneous that will come up. I actually hope to minimize it to the barest minimum when they come up.
Conclusion
My 60 days tracking of every penny that comes into my hand and how they go out has showed me that "Financial discipline starts with being serious with those little cents or penny that you think are not that important".
They are actually important. They seem harmless but very dangerous.
If you are not careful with them, they can ruin your financial life.