How do you spend your income?

Ralphjoe

Active member
The importance of spending your income in the right way cannot be overemphasized. A lot of people spend their income frivolously on unnecessary things that is off no great benefit to them. Spending recklessly can make even the most richest man to go broke or bankrupt so managing your income the right way can ensure that you get the greatest satisfaction for your earnings.

The formulas that one should use when it comes to utilization of your income that you can get maybe on a weekly, monthly or yearly incomes must be very effective at solving your financial needs.

The method in which I utilise my earning with is by segmenting them into different aspect of my daily needs and want. Twenty percent (20%) of my incomes goes to my savings every month while 50% goes into my investment portfolio and the remaining 30% is for my recurrent expenditures.
How do you spend your income?
 

Chibson

VIP Contributor
I have seen a situation whereby people ask questions like...,I have $1000, what profitable business can i venture into?. When i see these types of questions i tend to laugh at them. Putting all your eggs in one basket is wrong and that's the main reason people go broke overtime.
That's why financial planning is very important.
Now, to your question, I actually have five bank accounts;
1) For future (saving)
2) Investments
3) feeding
4) miscellaneous
5) school (I'm a student).
30% of my monthly income goes to savings.
30% goes to investments
20% goes to my school needs
15% goes to feeding
5% goes to miscellaneous.
My life have changed for better since i planned my finances this way.
 

Abigael

Valued Contributor
It is really important to spend our income careful. Otherwise, we can go broke easily or end up taking loans from people and spoil our financial stability even more. So one had better learn to budget money well and spend it wisely. The main thing one has to consider is the epenses on important bills and rent if any. Then he/she can save some money for a specific thing or for emergency expenses.

For me, my only source of income is from online work. It is not much but I always try to use it well so that I don't end up in debt. I also always try my best to save some of the income.
 

Lekhraj19

Verified member
It's great to hear valuable comments on reading your post. I also think money is the thing that more needs management and saving with respect to earning. Earning is a thing that you can try to and sometimes it will not come your way, as you think of. But, the management part is in our control that we can keep totally care of. Most of us in terms of harsh times like the pandemic that went made people jobless. It's all because we don't have plans to save and manage money.

However, those people who saved money and managed money didn't suffer much due to the pandemic.
 

Aniwhyte

New member
I'm unable to save my incomes due to the numerous and unending expenses, most of my expensis goes to food, transportation, fuel, electricity bills, house rent, etc the list is just endless, for so many years and counting I have been unable to save money due to all this expensis which is really so frustrating, I recently invested some of the little money I have on cryptocurrency and I lost half of it, I intends taking some loan from the bank anytime soon and start up a small business and I would be taking it as my alternate hustle.
 

Olajidey

Active member
Income spending depends on the kind of person you are either a luxurious spender or you, not a luxurious spender, besides if you have a wife and you also have children you train in school having a stable chart for how you spend daily might nor be realistic. the only thing to do is that you are not spending recklessly and you are trying to save on a monthly basis, it might be fix saving or not fix amount of saving.
As for me, I see that I save what I bearable for me as am not a luxurious spender.
 
The way and manner we spend our income matters alot. We need to look at how much we are paid and then outline our needs according to a scale of preference, so that we don't lack the most important things we need for survival.

Alot of people don't plan with their income, In short, before they are even paid their salary, they have already spent it. I think we need to be intentional about how we spend our income, especially in a situation whereby one has only one source of income.

Also we don't need to use our income to compete with others who earn very well above us. We need to look our needs and shape our coats.
 

Ummigal

Active member
I always make a monthly budget which includes my toiletries,feeding, transportation and an allowance I give to my mom. Most times, I save first. I simply decide what I will save before even looking at my expenses. I end up saving 2/3 of what I earn monthly. Then I make a budget of what I have left. Whatever I can't cater for from the budget, then I simply can't afford it. Although it's not easy to save money, because whenever you have money, you must find a reason to spend.
 

greatguy1

Active member
Savings is a culture everyone of us shield cultivate. I save close to 40% of my earnings, the rest is expended on my list of priorities which have been prewritten before the salary comes. My spending column includes spending for the family and personal needs. Due to the high rate of inflation, sometimes things become more expensive than what you have planned for; therefore a scale of preference is adopted. Order of priority is adopted which are food, clothing and shelter. Buying of foodstuffs that can last a month or more, clothes to improve ones grooming and little for my rent. This is largely how I spend my salary.
 

Hina

New member
31 y female living in pakistan. For the last year I have been trying to adapt to a more minimalistic lifestyle. These are my expense per month
Expenses
Rent 25000 rupes
Groceries ~10000
Internet / Mobile ~2000
Eating out / Take away ~4000
Savings
Savings account (Easy Access) 5000
Big learnings for me in 2020
I stopped shopping exactly one year ago and in this time i have come to realize how much of a money drain buying unnecessary things really is. Im no longer constantly broke
I have enough clothes. More than enough. No I don’t need another substandard on discount pair of shoes that I don’t really like
 
D

Deleted member 27583

Guest
The importance of spending your income in the right way cannot be overemphasized. A lot of people spend their income frivolously on unnecessary things that is off no great benefit to them. Spending recklessly can make even the most richest man to go broke or bankrupt so managing your income the right way can ensure that you get the greatest satisfaction for your earnings.

The formulas that one should use when it comes to utilization of your income that you can get maybe on a weekly, monthly or yearly incomes must be very effective at solving your financial needs.

The method in which I utilise my earning with is by segmenting them into different aspect of my daily needs and want. Twenty percent (20%) of my incomes goes to my savings every month while 50% goes into my investment portfolio and the remaining 30% is for my recurrent expenditures.
How do you spend your income?
This can be achievable if you are just the only one I mean you take care of your self alone,because if you still have an elderly ones in your family like your dad and mom,believe me well this you point out won't be as easy as you think and achieve ad well..
From my own side of view and it still happened to me as well,I have to grown ones in my family my dad and mom,we children we are still struggling to make more in life to give them the special care that they deserve ..
So I have to spent most of my income on them,although it is not that much i mean what i earn from offline working place,but at least it goes a long way..
I have been thinking of a way to make it more so I could also invest and save as well,I hope God help me with this platform to be able to achieve that that year or month I guess!!
 
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