Being well to do doesn't end at having a well-paying job that you think you can rely on. The fact is if you are living on 10,000 naira income at the moment; that is if your current pay is 10,000 naira, and it is solving all your needs. If you get a raise of 50,000, all your problems are going to rise to a 50,000 margin. If you have no technique of planning out your expenses and saving, you will always remain at the same level which is BROKE. And you are likely to be broke whenever your paycheck delays for just a bit.

To many, being wealthy is measured by the amount of money the individual can and is willing to spend. Some spend above their means, some even spend all they can afford just to make a good impression. Do we count those of them as being wealthy too?

Building wealth is more about how much you can keep. There are ways in which you can manage your money that can take you from the BROKE side to the WEALTH side. The first is...

1. TRACK YOUR INCOME AND EXPENSES.
The quickest way to become broke is to be an impulsive spender; buying at will anything you feel that you should have.
You have to take charge of your finances! More like being the CFO of your finances. To achieve that, you have to do the job of a CFO. Take note of where all your money goes to. Find out how much you spend on transport, utilities, clothes, holidays, food, etc. Find out ones that aren't necessary and the extravagant ones. Get a book, note them down. After taking this first step, the second is

2. MAKE BETTER FINANCIAL DECISIONS LIKE BUDGETING.
Allocate a different percentage of your income to different aspects of your life including savings.
When going about a budget, keep it simple.
This is how one of the characters of The Smart Money Woman by Arese Ugwu handle her budget:

"I divide my money into three different accounts—one for bills, another for long-term savings, and an account for when spoiling myself with a new bag or trip. As soon as my salary is paid, I transfer the money to each account accordingly. To be honest, it's become a habit, I don't think about it anymore. It just makes things easier.”

Start to make wise financial decisions like what percentage of your income goes to savings. As they say, "You don't save what is left after spending, you spend what is left after saving". That way emergencies won't hit on you without a cushion to fall on.
Know also that in budget making, miscellaneous is an item.

3. MAKE YOUR MONEY WORK FOR YOU.
Being broke can come as a result of being a low-income earner or having bad money management skills. The first sign to know that you are on the road to being broke is when you have no assets to your name. No land, no stocks, no investments. Just your regular
income.
How you can make your money work for you is by investing. There are so many ways to invest. you can invest in real estate, mutual bonds, treasury bills, stocks, agriculture etcetera.
That way your money makes more money for you.

In making investments, do not invest in anything that you know nothing about. Before you buy stocks or shares or invest in real estate, make sure you do your own research. Carry out some research on the company and the kind of business they do. Be sure you know enough about the company before you buy their shares. To be safer, you should consider going through investment firms.

Ensure you always ask questions. Ask the investment firms questions on what you do not understand about the investments they are advising you to make. Ask about How long your money will be locked up for, the risk involved, how much access you have to the money invested, the investment strategy, etc.

Also know that you do not invest money that you need to solve a need in the near future. Like money for school fees or rent. At least do not invest them in high-risk investment plans. Use your savings that you are keeping for the long term to invest.

To find out the right investment that will suit your money, you should have an investment goal. This goal will determine what kind of investments you make. Make sure your investments are in line with your goals; short-term saving for short-term investments and long-term saving for long-term investments.

4. GET MULTIPLE STREAMS OF INCOME.
To rise above being broke, one should be able to have a passive income that supports the active income. To make multiple streams of income, you could buy assets that can appreciate over the years. When trying to buy assets, ensure to spend less money on depreciating assets like cars. It is good to own a car quite alright, but a wrong or expensive car, especially a personal one, might end up taking all your income.

Buy assets like a shop or land that you can lease and collect rent. Anything that yields income, because what you need is multiple streams of income that will make sure that you do not go broke.

5. HAVE AN EMERGENCY FUND
An EMERGENCY FUND, just as the name implies, is money that you put out for emergencies. This fund should be in a high-interest savings account. It should not be used to invest in risky assets like stocks or cryptos. This is because the aim of an emergency fund is availability, safety, and liquidity. You need to be able to liquidize it in emergencies.

It is good to have an emergency fund because it will act as a financial cushion that protects your long-term investments from short-term unexpected expenses. It will help you in severe and unforeseen situations that would have led to you selling your assets such as fire outbreaks, sudden ailment, flood, a broken-down car, etc.

6. BUILD A FINANCIAL NETWORK.
Networking is an important part of human development and finance building. When you connect with like minds, you are always pushed above your comfort zone. Also, the importance of mentorship cannot be overestimated. You need someone or people who are more experienced in your field. One who has passed your level and seen life the way you see it. It might look like you can handle it, but it is always easier when there is a network of people to help you reach your target point.

In her aforementioned book, Arese Ugwu said: "You want a mentor who is invested in your growth and genuinely wants you to succeed. This is more likely when you have built a relationship and they become genuine friends as opposed to a transactional relationship that feels obligatory."

Apart from mentors, you need an accountability partner; probably a friend who calls to remind you that you are supposed to do this at so so time. it should be someone with whom you can share your goals and career.

In conclusion, to have gained financial freedom is to have a passive income that exceeds your expenses. Know what you want out of life. Break out of the cycle of wanting to "work hard, get promoted, earn more money, and the rest will work itself out." They never really do. You have to consciously make your decisions. Know what you want out of life. Know what you want the money you earn to do for you.

It is always easier to start with clear-cut-out goals of what one needs to achieve in a year. It can be narrowed down to what you want to achieve in a month with clear manageable steps on actions to take to achieve the monthly or yearly goals.
Things are more likely to be done in a new year, a new month, or a new week because a fresh start feels motivating.

I hope you will be applying the money management tips you just learned. Let's say YES to a broke-free life!


https://www.youtube.com/watch?v=k0tLEkNejK0

I agree with you. Nice write up

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@seraphvictoria Your words make sense! Capital management is a system of principles and methods of developing and implementing managerial decisions related to its optimal formation from various sources and ensuring its effective use in the process of the enterprise. Capital is the basis for the beginning of any business. But without third-party help, it isn't easy to accumulate capital, and to turn to banks is not suitable for everyone. I accumulated capital by following 32 Best Lean Lifestyle Tips. If you teach yourself good habits, then the problem with money itself will disappear. The main thing is not to spend more than you need! Your information has prompted me to pay even more attention to this issue. If it were possible, I would be happy to discuss it!

My biggest weakness with money has always been that I can't manage it properly and waste it on unnecessary stuff. At some point, I even started looking for more jobs to make ends meet. However, now I'm trying to make my financial situation better. Therefore, I started to sell my business ideas to companies that buy ideas. I hope your post will help me since I dream of saving enough money to open my own business and not just sell my ideas to others.

RustyKub1:
My biggest weakness with money has always been that I can't manage it properly and waste it on unnecessary stuff. At some point, I even started looking for more jobs to make ends meet. However, now I'm trying to make my financial situation better. Therefore, I started to sell my business ideas to companies that buy ideas. I hope your post will help me since I dream of saving enough money to open my own business and not just sell my ideas to others.

I'm rooting for you.

Nice writeups