Thursday, 7 January 2016

Do You Spend Before You Earn?

So today let's talk about how to handle our finance and still be able to save in 2016.

what differentiates someone who spends before saving from someone who saves before spending is the mindset.
This is the 7th day of the year and people have already made millions, some are in the process and some haven't done anything atall that will bring them money either daily, weekly or on a monthly basis.
How you plan your finance will determine whether you can be able to save out of whatever you make.
Let's see this mathematics below :

Income - Savings = Expenses
Income - Expenses = Savings

Not everyone can see the difference in this but be rest assured that the difference between those 2 people is like day and night.
Let me try to break it down for us by looking at the types of income.

1) Active Income: This is income for which services have been performed. This includes wages, tips, salaries, commissions and income from businesses in which there is material participation. Basically, this is income that requires your time and sweat.
2) Passive Income: This is earnings an individual derives from a rental property, limited partnership or otherother enterprise in which he or she is not materially involved. Basically, this is income made without your presence or involvement.
So what category do you belong to?
Have you realized that it almost always appears that somehow your income doesn’t seem to be enough and it appears that both your income and expenses signed a contract that once income goes up, expenses will also follow . lolz

This happens to people who earn 5,000 per month all the way up to those who earn in Millions per month. So it is not about how much you earn but how much you do with what you earn.
For instance, i belong to the first category of income earners and what i do is that out of my salary i pay myself a certain amount and have a certain amount that must go to my savings Maybe you can try something like that too as this has helped me not to spend unnecessarily. That is why i said it is all about how you plan your finance that matters.
In Naija today, is not a new phenomenon that expenses will always rise to match your income because the prices of last year isn't the same this year. And we know that in this country most of the time, the prices goes up. So, if you are a monthly salary earner that is receiving a small salary, you can involved in a business in other to be able to pay your bills because though things are more expensive but some of our income still remains the same.
Saving before spending or spending before saving can make or mar your financial future because a little action can make a big difference.

What is your take on this?


  1. it is good to save from your earnings. for low income earners, cut your coat according to your size and save for the future

  2. I agree with you wholeheartedly. Some people don't even have the word "SAVINGS" in their dictionary. The truth is that, once you're unable to save something when you're earning low, you'll definitely be unable to save even when you start earning millions. It's as simple as that.

    Alabekee’s Blog

  3. i have a means of saving though..Thank God cooperative deducts the money automatically from my salary if not ehn,

    I spend before getting alert sef ahahhahahaha..But really, its good to save cos of the RAINY DAY

  4. thanks for the article

    pls visit my Blog AdeneGift's Blog

  5. It's very difficult to save when you have a lot of expenses... But if you can start with saving just ten percent of your income it will help a great deal

  6. I don't save anymore, I used to save before but now no time life is too short to save, Lmao

  7. A lot of people spent and then finds it very difficult to pay their tithes because they will use it too to settle their debt. cheating and deceiving themselves. robbing God with their eyes wide open and all senses intact. creating poverty for themselves, making themselves vulnerable for the devil to attack and trample upon!

    I pray there will great change this year in Jesus' name, Amen!

    God bless you Gloria for this enlightenment!

  8. I used to save but material things won't allow me. I need to change this year.. Money is good and important but it should be spent wisely.

  9. That first approach is unrealistic in reality.

    I think before you determine the portion to save in your income for a particular month, you must have taken care of, or make provision for your expenses.

    Gloria, financially I say no to this first approach and deem it impossible because: If you have only one source of income, before you make any savings, you must have forecasted what your expected expenses would look like in the following month and deduct it or make provision for that.

    "This means you consider the expenses before saving"

    The first category is only possible if you have other source of income as you rightly said or you are ready to borrow when you are broke. That's why its possible to see guys making contribution from their salaries while the balance cannot even survive them for two weeks talklless of one month.

    If you have no other source of income and you can't borrow money, that means you will have to park your car at home and trek to office because you want to save.

  10. Nice Article.... Love the caption. Savings was very good when i was younger.. God will help me though. hmmm

  11. This article couldn't have come at a better time... thank God I didn't miss it.
    The importance of savings cannot be overemphasised, however it takes one to be disciplined to have a good saving habit. Saving even before earning if possible should be encouraged as it helps prepare us for the rainy days ahead.

    Egwumba’s Blog

  12. Gather ur food in dry season so that when the rain comes you won't go hungry( A lesson from the grasshopper about saving). Thanks for sharing.

  13. I think this has been my experience lately, I'll need to adjust.

  14. This comment has been removed by the author.

  15. Nice update gloria, its really educating and informative.

    I once gave an article on this " Top Major Reasons Why You Run Out Of Cash So Fast And How To Control It.".


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