The ABC of Personal Financial Management

Disclaimer: I'm not a financial counsellor. I get by with what I call common sense personal financial management - I don't reap more than I've sown. But this is not enough sense to manage today's high rate finances that sometimes go beyond one's immediate environment. Today, many folks have businesses across the globe. This class of people don't need this post - they operate at a level higher than I fully understand. This post is for people who'd like to know the few nuggets that can aid a struggling financial habit about personal resources.

I've chosen to term this regulation, The ABC of Personal Financial Management. Here it is:
A - is for Abstinence. Abstain. Abstain from wasteful financial undertakings. It's the local news for people to abstain from wasteful expenditure. It's also news and important to abstain from wasteful income. People only think of making money as the only means to wealth. They engage in crime and other nefarious activities in order to earn a living. Crime is wasteful to the criminal and the victim. Everybody's a loser, with crime and other illegal activities. Don't make money this way. Abstain from income yielding ventures that would land you or another in jail or trouble. You may end up losing money too. It's also important to avoid waste in spending. How much money do you expend on food, clothing, housing, medicals (including cosmetic surgery) and miscellaneous items)? Are all these things necessary for you? I learned from The Oprah Winfery Show some years ago that rent shouldn't cost more than 40% of one's income. Do the Maths. Need I say more?

B - Business. Be Faithful to Your Resources. Earn income, make money, earn a living (love what you do), learn a skill and stay true to your ability to rule your world. So much has been said about how to make money from main sources (job, business, hobby etc), residual and even dormant sources, and I can't think of more ways to do it right now. Find your own source and ensure that it's legal and can take you to the moon (just being silly). Be a saver whether for the rainy day or a vacation. Secure your resources against burglary (my endless frustration at home and everywhere else I've lived). Buy a good insurance policy. Mind your own business not another's.

C - is for CAUTION. Caution isn't just for the birds. It's also for us, humans, for everybody. When in doubt about anything ask questions. Do your research. Should I buy this house in Mattapan? Do I need a master's degree? I shall travel to Israel in a few month's time but I first need to watch the news. FirstBank is selling stocks but I shall buy only a few shares now and invest in my farm land: I need new farm equipment. I was going to buy a trailer load of Kyelie long grain rice but I bought a truck load instead. Ant infestation and other pests and parasites could make a good investment go bad. Caution isn't inertia. I think of it as a life saver - that it could save us some regret in the future. Be prepared for life's dirty games, accidents and incidents. A good insurance may seem like an income eater, but it's as good as any good savings account with money saved up for eventuality. Nigerians, especially Ndigbo (Igbo people) think of insurance as inviting trouble or bad omen. It's not. It's comparable to having/keeping a spare tyre(s) that one may never use while on a long journey. Insurance fraud scares people. That's why I stress it's got to be a good one. I've never bought an insurance policy all of my life. But I plan to insure my property (not another's) when my financial life improves.

Personal financial management as simple as ABC? Read this post again.