In the last update, we analyzed what it means to be on step 1 – To have an income that is less than your expense. We also promised to look at solutions in the next update, we will. Step 1 is where most people are, here are the indications and the solutions.
1. Your income may be genuinely small or nil – this is an indication of ignorance of and not haven taken responsibility for your finances. The truth is no matter what card you are dealt by life, things can begin to change the day you decide to take responsibility. The concept of earning multiple streams of income is real, but it has to be deliberate. There are a few genuine opportunities to earn extra income. If your income is nil, you have to find work to do! There is dignity in labor, and you must not wait for the exact kind if job you want to start. Start with what you have and is available to you, and if you are truly overqualified for it, you will qualify for more from there.
2. Your expenses are out of your control – many families rather than budget do what we call, reverse budgeting. They only account for what they have spent when they have spent it. There are loads of people who don’t even do either budgeting or reverse budgeting. The remedy to this pending financial disaster is to take control. Quit abandoning your financial future to the unsteady hands of goodluck. You need to be deliberate, make financial budgets and plans and make genuine effort to keep them. You may not be able to reduce your expenses, but you can at least manage them.
3. You are in debt, and a good portion of your income always goes towards settling debts. What you need to do is make a plan to settle your debts. Call your creditors and work out a plan that you can sustain without destroying the present or driving the car of your finances into the abyss of bankruptcy. You need to acknowledge your indebtedness, and come up with a sustainable plan that doesn’t make you consistently live above your means.
Adeolu Akinyemi
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