“Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime”
Lao Tzu
Recently, I hosted a free webinar where I taught on “Budgeting & Money Management Tips.” Delivering this content to my audience was very rewarding to me as it aligns with my passion to transform lives and change communities through “financial literacy.”
Those who attended expressed how meaningful the session was as they were able to interact and ask questions. I also received positive feedback from them that the information I shared had real value, with practical tips that can be applied to both business and personal finances.
“I am writing this letter to thank you for serving as a speaker at the webinar on 2 June. It was fascinating, and your talk benefited me because I learned the essentials of having a budget and some practical money management tips…..” (Webinar Participant)
I often hear the statement made that “financial literacy” is a concept that is not taught enough in some communities. Matter of fact, one of my guests at the webinar shared that she would love to see more programs offered in “minority” communities, where people of color can have better access to tools and resources on managing their money better. I definitely echoed that!
“Earning a lot of money is not the key to prosperity. How you handle it is.“
Dave Ramsey
I have weathered many financial storms throughout my life. I know fully well, what it’s like to be unemployed and also what it’s like when the paycheck just does not go far enough.
Raising two children as a single parent gave me the determination to make what I had work and to develop some creativity in managing it. My excellent skills at budgeting has allowed me to leverage my resources and have enabled me to meet my monthly financial obligations.
I would love to share with you strategies to take what you may think is just a little and manage it in a way that will amaze you; therefore, I will be hosting more webinars in the near future.
I know what it’s like to make the difficult choices and saying no to some things as I kept the focus on what was most important. Prioritizing needs from wants and developing a plan to allocate the funds wisely.
Achieving some level of financial independence is what most of us strive for. We work diligently to provide for ourselves and our families. When meeting monthly financial obligations for life’s basic necessities is a struggle, it can be very stressful.
Food, shelter and clothing are at the top of the list of priorities, while everything else seems like a luxury. In some communities, families need additional assistance just to meet these basic everyday economic needs.
“Poverty is said to exist, when people lack the means to satisfy their basic needs.” (https://www.britiannica.com/topi/poverty)
While there are many causes associated with poverty, such as scarcity of economic resources, the inability or lack of skills to manage one’s resources efficiently, is also an important factor.
One of the fundamental concepts with budgeting is categorizing needs and wants or essentials from non-essentials. Sometimes it is not how much one has but how well what you have is allocated or managed.
How Well Are You Managing Your Money?
- Do you have a budget?
- If you do, are you prioritizing your basic needs?
- Are you spending within the parameters of your budget?
- Is there provision for saving or investing?
- Does your budget result in a surplus or deficit?
If you are able to provide answers to at least three of the five questions above, then you are on your road to gaining some level of control over your finances. It takes a plan and a certain degree of discipline in order to achieve the goals you set for yourself. Keep in mind, everyone has a different set of circumstances although we can find commonalities in some areas.
It’s Not Just What You Earn But How You Manage It!
- Strategize – Make a plan and stick to it by listing goals you wish to achieve.
- Categorize – It is important to prioritize from most important to the least important.
- Streamline – Eliminate those areas that do not align with your established goals.
- Review – It is of the utmost importance to review and make adjustments when needed
As you make your plan, executing it would revolve primarily around the two main determinants:
- Your income and
- Your expenses or financial obligations.
How much resources you have to work with is the key determinant right along with what are the demands for it. As stated earlier, you begin with prioritizing the most important needs to be met such as:
- Shelter – Rent or mortgage will most definitely be at the top of your list. After all, it is not desirable that anyone goes homeless.
- Food – Having a family to put food on the table for means you must allocate sufficiently.
- Electricity & Heating – Can you imagine what it’s like if the lights are turned off?
- Clothing – Although there is flexibility here, the basics like shoes or a warm coat is a necessity.
As we go down the list of expenses, the lines on each person or family’s budget can vary but the four basic areas are common for almost every adult. What tends to be the greatest challenge is the costs of these basic necessities in proportion to income.
The balancing act of how to make the money go as far as it needs to, drives the requirement for pursuing a second income for some households.
The main idea here is to make an assessment of your economic situation to determine whether you have a path towards achieving your financial goals. Are you maximizing your resources in such a way that your money is working for you or are you living above your means?
We all want to enjoy some of the finer things that life has to offer, such as taking vacations and saving to retire comfortably.
It is all in the planning so make that assessment and do everything to eliminate areas of waste. Analyze your receipts to see whether that was a necessary purchase. How about some of the recurring subscriptions, it may be time to cancel some of them.
If you are not going to the gym as often as you should, consider working out at home to save money. Another one, cook more meals at home. It’s healthier anyway. These are just a few practical tips to help you along.
So, with all that being said, here is the questions I have for you today:
- Where are you in your financial journey?
- Are you happy with where you are, just comfortable, perhaps barely making it?
- Do you need some help in developing a budget or streamlining your current one?
Book a free one-on-one consultation with me, where we will explore your finances to find ways to maximize every dollar. please click on the link below: