When I first started working, I didn’t make a whole lot of money at my 9-5 & to top that off, my financial management skills (if I can even call them that considering how abysmal and irresponsible they were) didn’t exactly help the situation. However, I did learn a thing or two.
- Save – You should have AT LEAST 2 bank accounts. One should be a savings account with no ATM access, preferably with a bank that isn’t even VISA capable, where you deposit a minimum of 25% of every payment you receive.
- Keep track of your spending – personally, I use an app called “Wally” to record every single pesewa I spend. I encourage everyone to keep records like this because it gives you a new perspective on how much your quality of life costs and how much you should be making/saving to maintain/improve it.
- Learn how to negotiate your salary – Many people systematically undersell themselves when negotiating their salaries. You need to quickly find out what you’re good at and what you’re worth to your client/boss, and even more importantly what you’re worth to THEIR customers so you know how to sell yourself.
- Live within your means – It took working for five years for me to understand that physically possessing enough money to pay for a product or a service, and being able to afford, it are two very different things. For example, I was taught was that if you want to buy a Mercedes Benz, you should be able to afford at least 3 of that same model due to the maintenance expectations of both the vehicle and the accompanying lifestyle.
- Rent is one week’s salary – Another nifty tip I use is to divide my salary into 5 parts; whatever a fifth of my salary is, is what I can afford to spend on rent. So if I want a bigger place, I need to make more money.
By Guest Hacker Egyir Davies
Writer. Thinker. Creator.
