Money is an essential part of human life, and while almost everyone loves to make money, it is surprising how many people do not know how to manage it. A lot of us assume that income management is only necessary for people who earn little money, but in reality, wealthy individuals, especially business owners, manage their income carefully because they understand how money works.
Growing up, I often had money here and there, mostly as gifts from my neighbours and members of my extended family. But I never considered managing it. In boarding school, I noticed that some students who received little pocket money from their guardians could still save by the end of each term. At the time, I did not see the need to save because I believed I had enough support from my parents, unlike my peers.
As I grew older, I began to understand how important income management truly is. I realized that any money that enters your bank account consistently can be considered a source of income, likewise any that is given to you in cash. The understanding I got from this made me put some effort to kickstart my savings journey. I bought a wooden savings box with a small hole at the top, and I started putting money into it daily. While this method worked for many financially disciplined people I knew, it did not work for me. I eventually spent all the money I'd saved on something I did not need, and that item did not even last two weeks. That experience made it clear that I needed to do better.
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The first step I made towards income management was learning to separate my wants from my needs. Whenever I feel the urge to buy something or spend on an experience, I ask myself whether it is a necessity or simply a desire that I can live without and I make the best choice from there. This habit has helped me spend less and save more. Another step I took was setting aside a portion of my monthly income and locking it in a savings account. This prevents me from touching the money when the temptation arises, as I wouldn't even have access to it until the set date I signed when I opted for the savings plan.
I've also been able to manage my income by simply learning to say NO, especially to people who constantly ask for financial help without an urgent need. A lot of these people are perpetual takers who can empty your pockets if you do not set boundaries. So, learning to say no when the situation is not an emergency has been helpful towards managing my income.
Finally, having multiple sources of income has helped me manage my finances more effectively. At the moment, web3 platforms like Hive and the freelance work I do, provide additional income to me. This extra income allows me to invest in stocks and cryptocurriences with a solid team and a clear road map.
The positive results I've experienced from following these steps has made me realize that income management is one of the key paths to financial freedom and I hope everyone gets to a point where they will choose to prioritize it over irrational spending.
This blogpost is a response to the Indiaunited weekly prompt:
Theme: How Do You Manage Your Income?
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