HOW DO I CUT DOWN MY COST (TAKING CONTROL OF YOUR FINANCES AS A WOMAN)

Hello,

There are many ways you can cut down your cost; you need to know what you spend money on, how you spend money and what you need to spend money on.

Let me rephrase, you need to keep track of your previous expenditure, understand your spending habit and create a budget (have a criteria for items making it to your budget – urgent and important) and look for alternatives (hitching a ride or walking).

This sounds like a lot to do but there is really not much to it. Come on, let us begin together. Get yourself a paper and pen.

I mean it, grab a paper and pen OR open a writing pad on your electronic device. I know you want to see good results so please be a sport.

Keep track of your previous expenditure

How was your last income(s) spent? It may be quite an exercise but trust me, it is rewarding. I know of a friend who thinks his brain is more efficient than any writing pad. Guess what? He forgets the most but he still swears by his brain’s efficiency.

Can I have you write it down like this:

Income:       Salary                 N10,000

              Family gift                N5,000

Expenditure: Rent               (N3,000)

                   Chewing gum  (N50)

                   Aso ebi            (1,000)

          Friday’s turn up        (5,000)

I still have a balance of         N5,950.

Understanding your spending habit(s)

Do you remember the last major item(high cost) you purchased? Can you remember the last small (low cost) item you purchased? Can you remember how you pay your rent/that school fee/daily transport cost? Let us nickname these scenarios above (Scene 1, scene 2, scene 3)                                  

                                                                                        Scene 1   Scene 2    Scene 3

What was your mood before you made the purchase?

What was your mood after you made the purchase?

Did you pay with cash or card?

Do you make such purchases regularly?

After you must have answered the questions above you may find that it is the ‘littles’ that amount to much.

You may also find that your purchases are driven by a certain mood or feeling (i.e Joy or sorrow; Just receiving some money or not having money, Depression e.t.c)

You may find you spend more when you have your bank cards or cash with you or maybe you do not know any other way to spend because your spending style may stem from the family habits and traditions you have been raised by.

… This blog post continues tomorrow with more on this topic, would you not rather have friends and family benefit from this? Share across your social media platforms and as usual, please leave me your comments below.

PEARL