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It is very important that you manage your money properly. It is one of the most important things in your life as it affects almost everything you do. Good money habits take practice and discipline. Many people find money management frightening or even boring because they think it is all about math and finance. Good money management is largely a matter of making good decisions and setting up good systems to manage your financial operations. It may take a lot of effort at first, but as the habits are developed, managing your money will come more naturally. In this article, I’ll write about how to manage money.

It is a fact that one of the most needed skills, especially for adult life is money management. Money management skills affects more than just your success, it is an essential skill for one’s future happiness. How you manage your money can have a profound impact in your life and reduce life stress. “Click to read about how to deal with stress”. Personal money management depends on one’s income, expenses, living requirements and individual goals and desires.

Proper personal finance management makes you financially secure and also helps you to achieve desired goals, both short term and long term. It involves earning, budgeting, saving, investing and spending.
Before I breakdown some areas worth looking into, we need to understand wealth management {how to become rich even with a low income

small saving

small saving to achieve goals


Is it really possible to become rich with a low income? Some might say it’s impossible as the wants and needs of humans is often insatiable. Some of us already have a low income which might often make it impossible to manage money effectively. In cases pertaining to personal finance, it might do us a lot of good to employ the services of a financial advisor.

low income saving

low-income saving

Financial advisors are professionals who provide financial services to customers based on their financial situation. They provide services such as simple steps to manage your money, banking, saving and insurance, investment management, income tax preparation etc.

Some of us may ask questions concerning what these professionals do with the money we entrust to them and how they decide on the best investments and course of action for us.


In life, we have many dreams and aspirations, ranging from saving for the education of your children, dream of buying a house someday, acquiring your dream car. Whatever this dream of yours may be, you need someone to work with to make this a reality and that’s where a financial advisor is needed to help us accomplish these goals.

In many societies where tax payments are absolutely necessary, discretionary income strategies might prove helpful. And a personal advisor can help with tip on good money management. Let’s us delve a bit further into discretionary income.Finance

What is discretionary income?

Discretionary income is the total money you have left after deduction of taxes and other obligatory charges. It’s basically your personal finance after payment of all required living expenses whether it be to the government or a private parastatal. It is the amount of money left for managing debts, banking, saving and insurance or investing. Managing debts include paying for personal necessities, such as food, shelter, and clothing.

Discretionary income comes in handy e.g. in cases of economic recession, job loss, pay reduction, students loans repayment plans. It is important to understand what discretionary income is and how it’s calculated. And the help of a financial advisor is needed to give us a better understanding of discretionary income and provide tips on managing money effectively.

Working with a financial advisor and having a better understanding of what discretionary income is can help us in our quest to become rich even with a low income. We can get rich slowly if we develop good money habits and also understand how to manage money.

Frequent use of credit card can effect you life

use of credit cards can dramatically help your financial life


1) Transaction Motive: This is basically money for our daily use. It is a desire to hold cash in other to perform cash-based transactions. It includes costs that come in each month, and are necessary for everyday life. Examples are cell phone bills, groceries, fuel and gas, internet services, transport fares etc.

2) Speculative Motive: This is a scheme in which one holds cash in case an attractive investment opportunity arises or in situations where interest rate goes up in future, thereby giving higher returns on investment.

3) Precautionary Motive: This is usually as a precaution against an uncertain future or unforeseen circumstances that may require monetary transactions e.g. sickness, accident etc.



If you are not employed in any capacity, the issue of money management is shaky because you cannot do much without income. For instance, as a student who does not earn much or who can scarcely afford daily expenses, the idea of saving money might seem absurd, yet, the importance of saving money is undisputed. In such a situation, you should take an interest in looking for a job and start working right away, thus, generating income.

small saving -smart saving

small saving -smart saving

It should not be something too fancy or too big. It could just be something you love, maybe working in a restaurant or a supermarket. Once you start making money, then you should start figuring out your next plan and what to do with the money. It is important to note that income generation should always be first and foremost. It is after you start earning income that you can learn what money can do for you.


This means knowing where your money is going and planning ahead. It is a plan for saving and spending for the near future. Creating this spending plan allows you to determine whether you will have enough money to do the things you would like to do. Budgeting helps you measure your expenses to your income. A good way to do this is by spending less than you earn. You don’t need to be excellent at math and finance to set up a budget. All you need is a paper and pen.

A great way to start is by writing down all you spend your money on in a month, no matter how small. At the end of the month, you do a review of all what you have written down and you cut back on things that are less important. This allows you to forecast how much money you will be able to save for important things. If you are bad with money, you should not create room for excuses with budgeting; you should think instead of the value that budgeting will bring to your life.


earn enough before you spend

earn enough before you spend

Here are some important reasons why you need a budget:

 When you budget, you spend according to your priorities
 It helps you to live within your means
 Careful budgeting stops overspending and helps you save money.
 It helps you prepare for emergencies
 Budgeting helps you to set and reach financial goals

Budgeting is the most effective tool for managing your money as it is the best way to help you achieve your dreams. You should set a budget that is accurate and realistic, so that you can have good idea of what you have available to spend, where the money is coming from and what you want to spend it on.


Savings is income not spent. It means putting money aside on a regular basis. It can be difficult to figure out easy ways to make money and sometimes the hardest thing about saving money is getting started. Human needs and wants are unlimited; therefore, we must save because we cannot predict the future. Saving makes a person financially strong and secure. Some people find it hard to get motivated about saving, but it is often more easier if you set a goal; real and achievable goals. That is the first step.

beware of Bitcoin investment

beware of Bitcoin investment

Here are some important reasons why you should save:

 It makes you feel good
 Creates financial independence and success.
 Your education is secure. “Read about how to succeed in school
 Starting your own business becomes very easy.
 Making big purchases.
 For travel
 For unforeseen expenses and emergencies e.g. car failure, medical bill, house repairs etc.


low income and saving is not very tough

low income and saving is not very tough

Sometimes saving money in a savings account may not be enough. Piggy banks and money box can go a long way in saving for that trip or in buying that computer. It is not a person’s ability that encourages one to save money, but the willingness that drives him to do so. People who save money regularly, no matter how small, are well on their way to financial freedom. Famous quote by Warren Buffet – “Do not save what you have after spending, but spend what you have after saving”.


The process of investing is known as investments. Investment refers to the process of investing funds with a view to generate profit. It means putting your saved money in various products in other to earn returns and grow your wealth. Sometimes people buy something in the hopes that in the foreseeable future, the value of that asset will increase and then they can sell at a higher price. This process is known as an investment. An investment always comes with a risk of losing money, but it is also true that investment provides higher returns.

explore real estate investment opportunity

explore real estate investment opportunity

Here are important reasons to invest:
 Investment allows you grow your money
 It helps you reach your financial goals
 It helps you earn higher returns and generate more cash for your future.

Before you invest in anything, you should be financially educated. You should know every little detail about any potential investment before putting your money. Don’t get distracted. There will be lots of things trying to push you far from your end goals. Stay focused on achieving your monetary goals and, if you must invest, invest well. Investing your money will always be better than doing nothing with it.


This is simply an act of giving money away for goods and services. We spend money on a daily basis. Just because you have the money available does not mean you can buy anything. Before you make any purchase, make sure it doesn’t interfere with anything else you have planned. Figure out what matters to you most and spend on important things. Think before you spend. If you must spend, make sure you have already contributed to your savings. Some people spend everything they earn; this might cause you to be late on bill payments. You should always spend less than you earn, as this allows you the freedom to save and to prepare you for the future.

think before you invest

think before you invest

Here are important reasons why you should not overspend:

 When you overspend, you cannot save
 Overspending is as a result of poor planning and this sets us up for failure
 When you spend without outlining your expenses, you are more likely to end up in debt.
 Overspending might put you in financial future risk, which might make you less able to handle problems in future

Plan ahead and put off purchases until you can afford them. When you can borrow or rent, do not buy, as this can be done for smaller amount of money, unless it has sentimental values e.g. DVD, books etc. Spend on things you need, not things you want. Someone once told me that the greatest rule of spending is “only spend what you have, not what you hope to make, unless it is an emergency”.

become rich slowly - Nothing is impossible

become rich slowly – Nothing is impossible


The only way to ensure a financially secure future is through proper financial planning. Financial planning is a conviction to move from where you are to where you want to be. While not everybody makes financial mistake, those who do can face difficulties trying to get their finances back under control. We owe it to ourselves to prevent this from happening. We can therefore deduce that poor money management:

 Affects our health
 Affects our career
 Leads to debt
 Leads to overspending
 Makes us ill-prepared for unexpected events.

It is, therefore, safe to say that people who cannot manage money end up losing money.


 Before Saving, refresh your mind Read my post here Natural ways to Mange Stress and anxiety

and keep in touch for upcomming related Money saving Tips blog

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Thanks for your time.
Until next time. Görüşürüz.

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