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SAVING

 

Saving

One of the most talked-about elements of managing money is saving. Saving is the ability to put aside some money to achieve something either immediately or in the future. Therefore, a person may save for a project which might be to buy a car, house deposit, go on a trip, or just putting money aside for emergency and or retirement. Did I say retirement, how many people think of putting money aside for retirement?

How does one manage to save some money?

Saving has to be undertaken like a project, where a habit is developed so that consistency and discipline are key to achieving the intended goals. There are steps undertaken before saving can be realised and these are:

  • Mapping one’s expenditure
  • Ensuring daily living needs are met before putting money aside
  • A budget is put in place to ensure that there is money to spend and there is a bit of extra
  • Developing a habit to keep money aside

As mentioned above if these attributes are not met, then it is impossible to save any money. One requires to live comfortably while also putting money aside for bigger dreams. Below is a case study where a lady by the name of Sofie put down strategies for saving some money.

Sofie always wanted to save some money for future use, she intended to have enough for a house deposit. Houses were and still are very expensive and Sofie did not have job security since she was a casual worker and her salary was not very high. Instead of Sofie dreaming of ever owning a house but did nothing to achieve these dreams, she embarked on a journey where she took her first step in writing down her expenses and ensured that her daily living requirements were met. Sofie also undertook a budget where she allocated money according to her needs. After reviewing the leftover money Sofie realised that it was to take years to save for that deposit and with nothing to lose, she embarked on putting something small aside. After ten years of constant savings, Sofie had just enough money to put down for her small unit since that is the only thing she could afford. Sofie could comfortably afford to pay her mortgage instead of renting without putting too much stress on her finances.

To enable saving, one has to deny themselves some things to facilitate putting aside that extra coin. For instance, if one takes five cups of coffee every day and each coffee costs five dollars, reducing the amount of coffee taken each day can promise some savings. It might not be a lot but over time the little money can make a big difference. Alternatively, one can purchase one coffee per day and substitute the other coffees using the work coffee machines. These machines might not be as good as barista-made coffee but they reduce expenditure and that money can be put into savings.

Another area of improving one’s savings is to assess their lifestyle. Are people living a lifestyle that does not match their income and therefore there is a constant demand for money? In other words, living beyond one’s means. If this is the case does one need to adjust to their level of lifestyle? There are too many areas to look at managing finances which can help in sighting where money is wasted and this money can be put into savings.

How well do you manage your money and are you good at saving?

 

 

 

 

 

REFLECTING ON SELF-PUBLISHING

Today, I am reflecting on self-publishing a book and the experience as an author. As mentioned in other articles it has been a journey being new to this world of books and while it looks easy it has its challenges. I came to the book publishing world without any knowledge apart from the little I had gathered from the internet. I am sure some other indie authors go through the same path. This journey has increased my learning and research capacity and got me interested in knowing more.

 

Indie publisher

One of the lessons I picked early after publishing was that it is not as easy as an indie publisher.  It takes a lot of effort in shouting about the published book to get people to purchase and pass the word across to their friends. It is also a time when friends and families support the author and others disappear when they realise, they have to purchase your book. All in all, the excitement as an author is overwhelming and I cannot change that feeling. Even when I sell one copy after a long time, it is still a good feeling knowing that somebody who does not know me is reading my story and hopefully they enjoy it.

As an indie publisher, the thinking mentality that once published the money will be trickling into the account is very wrong, publishing is one thing and money coming in is another story altogether. There are millions of indie publishers on Amazon and one has to stand out to enable good sales. Having said that the little money which comes once in a while is worth celebrating particularly if one is not undertaking a lot of marketing.

The marketing part of the book is extremely difficult and one has to be prepared to spend a lot of money to put themselves out there for the book to be recognised. This does not mean that some people do not sell even without spending a lot of money, it is a luck of the draw and if luck is on your side with a good book then one gets to stand out. However, I treat my published book like having another business, which I have to continuously market and create awareness of it.

Five months after publishing

I published my first book five months ago and I have not had a huge sale online. In earlier months I tried to market through different recommended strategies such as Facebook, amazon cost per click and other platforms but I have seen very little outcome maybe one or two sales. Therefore, I decided that I was not going to spend more money on advertising on these online platforms however I use my mouth to let people know about my book.

I also did not use KDP select since the internet was not recommending this route, as a new author it was a huge mistake and even though this route has its disadvantages, it gives new authors a platform to get exposure.

I printed some few books which I carry with me all the time and when I chat with people and they ask what I was up to, I find it a good time to introduce my published book and people seem to be interested in knowing more. Some show interest and buy the book on the spot. Others want to know whether it is online and they will get it from there. At the same time, I chat about my upcoming book which will be published sometime this year.

I have seen a lot of interest in people wanting to purchase the second book once out. Maybe because the book is about managing money and some people have issues managing their money therefore the book sound more appealing to people than what I had already published. I, therefore, collect information from people so that when the book is almost published, I will keep them updated.

I also do some other hassles on the side where I attend markets occasionally, I thought any opportunity is good enough to expose my book to people. While I sell my other wares, I put my book on the side and advertise it and again people get interested in the story and even though I have not been to many markets, I have sold a few books this way.

I have learned that writing is a passion that provides me with satisfaction in sharing my story with others and if at all, I get rewarded in monetary funds it is a bonus. As I continue to learn, I am looking forward to publishing my second book.

Anyone willing to share their experiences in publishing, marketing, performance and/or provide some tips? It would be great to hear from others so that we learn from each other.

TRACKING MONEY

Last week I discussed the need to create a budget to manage money. While a budget is an important part of managing money, there is another component that complements a budget. This component is called tracking money or record keeping. It is one of the elements which is forgotten when people organise their finances.

So, what is this tracking money about?

Tracking money is the ability to keep a record of what one would spend in every day’s life. The tracking includes any small amount of money used. It might sound petty but it is an important part of managing money and the first step in identifying daily expenditures with the aim to achieve a total overall expense record over time. Maintaining the same lifestyle is also important while keeping the track record.

There are a lot of apps that can be used to facilitate tracking money. If not computer competent, a pen and paper can be used to achieve this objective. Where house expenses are shared there is a need to ensure that everyone is on the same page in recording their expenses. Therefore, a book might be placed in the kitchen where it is accessible to everyone to document whatever is used daily.

Six months of tracking money

To achieve a positive outcome of how money is spent and where six months of record keeping is necessary. This time is not too short neither too long but just enough to showcase money spending patterns.

After six months, it is easy to know one’s spending routine and after this, the money tracker becomes a guiding tool to budget-making. The money tracker is also an educator as to where the money is wasted on unnecessary things and this money can be put into savings for different projects.

Some people might disregard tracking or keeping a record of expenses but it is paramount to have a baseline of where to start in managing money. It is very difficult to make a budget if at all there was no tracking of money. Making a budget without first tracking the expenses is like walking in a dark room with the lights off.

What goes in tracking money record?

The whole idea of tracking money or keeping a record of the same is to ensure everything is put down on a paper or an app. The date and money spent including lunch, two dollars donation, coffee, bottled water and any little thing purchased with either cash or credit card need to go into the record. If children are given money for lunch this should also go into this record.

Other essential and necessary expenses must also be included on the money tracking record to provide an overall, outlook of the whole house hood expenditure.

Again, if money is not recorded properly, organising the finances would not be accurately reflected. Tracking money requires dedication, time and discipline.

Agnes has a great job with no children, no house mortgage, no car but lives from pay packet to pay packet and owes the bank six thousand dollars in debt. During a team meeting session, Agnes confided to a friend that she had problems managing her money but she could not figure out where her money was going. The first thing Agnes required to do was to track down her expenses without changing her lifestyle but putting down every penny she spent. After six months, Agnes would be in a better position to understand her routine expenditure and habits.

Using Agnes’s case study how many times have we interacted with people in this category?

I am still writing my book on managing money and these are some of the snippets of what is expected to be found in the book. Please feel free to comment.

 

Managing Money

This is a follow up from last week on my upcoming book. Today, I am going to look at the snippet of what will be coming in my book and where to start with this managing money business. We find ourselves trapped in debts and at times we are not even aware of how we acquired it. Is it naivety or ignorance?

Managing money is a fairly discussed topic however, it seems like many people struggle to manage their money despite some earning really good salaries. Some people talk about how they are struggling to make ends meet and with the pandemic things have gone a bit worse than before. 

However, the principles of managing money do not change with or without pandemic, maybe a few thoughts might be put into consideration due to pandemic to achieve better results. Managing money problems have been with us for a long time hence the reason why I embarked on a journey to write about it. 

It is difficult to keep everything up to date however when it comes to personal finance, we have to commit and dedicate time to our money and there is no shortcut if one has to live a comfortable life. 

So, let us look at our first initial problems in tying ourselves into debts.

Want versus Need

Want

Most of the time we get ourselves into debt due to our desire of wanting to attain something in life even when we are not in a position to afford it. We forget the priorities in life and just satisfy our egos. How many times have we gone on a shopping spree and bought clothes? Then get home and decide that we did not need that dress we just bought and the next step is a bin.

The word want is a horrible thing in some perspective, want is the desire to acquire something even when we cannot afford it. I want to have a nice fast-moving car however when I visited the shop it was extremely expensive. Never the less since I want that car, I must get it and therefore I entered the bank and applied for a loan to buy the car. The car provides me with a bit of comfort but it has also created a lot of stress since the loan has to be paid off whether I like it or not. My wanting, in this case, is not a priority, it is a self-satisfaction idea that I can survive in life without. 

The lack of patience to enable saving and buy that car when the time is ripe could be one of the debt creations. Even when one can save, it can be impossible to buy a very expensive car since one’s income dictates how much a person can save and live a decent life at the same time.

Need

Need is an absolute necessity in life, Jane was living with her parents however she moved to a different city for work and she does not have a house to live in. Jane decided to look for a house near her workplace for rent to enable her to have a place to call home while building her career. A house in Jane’s case is a need and she cannot survive without having one. In a situation where Jane might not have the capital to put down for her house rent, it is justifiable for her to incur a debt to have a head start in her life. However, this debt has to be paid once she receives her first pay.

Where do we go astray with our money?

Lack of planning contributes to not being able to manage our money appropriately hence making the wrong decisions. A plan is a well thought organised document that outlines when and where the money is going to be used or allocated. This document is called a budget. However, one cannot budget if they do not know where they spend their money. 

One might have the best budget but unless one has tracked their expenditure that budget might be useless and not achieve its intended objectives. Therefore, from my point of view budget is the second step in managing money and the priority is tracking that money down.

It would be nice to hear your views. Please let me know whether there is any topic you would like me to discuss about and I will be happy to share my views if it is in my area of expertise.

 

 

 

 

 

 

 

INTRODUCING UPCOMING MONEY MANAGEMENT BOOK

It has been a few months since I published my first book which is a bit personal on a lifetime dream trip and this is the book that opened my eyes to the publishing journey. However, I find myself interested in many topics and I am not one of those authors who are just stuck on one genre. Therefore, my books will be based on different genres as I continue to grow. 

My second baby is based on managing money anticipating to publish it in the first few months of next year (2021). I have always had an interest in writing a book on managing money. It has been on my list to do for a very long time and I had put down a lot of information but had not been serious about it. After revisiting this information which I had put in the drawer, it is time for a book to be created.

Why write about managing money?

Interacting with people is an important part of our lives and I do enjoy that part of my life as I get to learn what others do or behave. Managing money came into my interest through working and interacting with different people and I realised people have problems managing their money. Some people earn decent salaries and yet they have debts overflowing in their lives. Others live from pay packet to pay packet and I always wondered why this happens to people. When I listen to what people do with their money, I realised there is a need to write a book based on simple terminology and very basic ideas on what it takes to manage money better. 

I am sure a lot of authors have written about managing money and I will not be the last one to do it, but maybe one or two people will benefit from my insight on how managing money can be achieved. One does not need to be rich for them to manage their money. Managing money is overlooked and most people in our society think that only the rich can manage money. The truth is some rich people are very poor in managing their money and at times they end up losing it all since they cannot handle it. Managing money is a responsibility of everyone who is earning it whether poor or rich. 

Figure out this case scenario: A married man in a developing country is a father of two children does not have a regular job, however, he relies on his luck to gain a casual job daily. When he manages to secure his job, he earns a wage based on that particular day. Since he is not assured of future jobs, this man will organise his money in a way that will cover his needs to keep the family going until the next casual job comes around. He does not have a lot but he allocates his money according to his priority needs. This man is poor but he is managing his money according to his own needs. It is simple and very basic.

Why do we fail to manage our money appropriately?

One of the biggest problems why we fail to manage our money appropriately is lack of commitment and the mentality that money is coming into the account every fortnight, if in Australia or monthly in other countries if one is working. We are not going to work forever and if we can start to manage money at an early stage, it helps in supporting us during our twilight years. 

We also find ourselves living beyond our means where we are interested in lifestyles that do not fit our level of income. Hence, loans and debts, start building up to fund these lifestyles which are short-lived. Due to these debts, the level of stress builds up and our body cannot handle it anymore hence lifestyle diseases develop due to poor diet and lack of rest. Is it possible to live comfortably and enjoy our lives? Yes, it is very possible but if only we can assess our needs and tailor them towards our lifestyles. 

Dedication and patience are what is required in money management and if at all there is spare money to save then even better since the savings can increase our kitty by earning some extra coins for us. My book will unveil some of these small things when it comes out. Are you a good money manager? Would be glad to hear any views whether positive or negative.