In this world we live it’s common when you ask someone for financial assistance only to be denied with a flimsy excuse that “if I have I would have given you but my salary isn’t enough” well don’t get me wrong. Am not saying people should now start to dish out money irrespective of their financial status, nay. But one important thing I would like to bring to your attention is that many people are slave to Parkinson law.
Lets make it simple. Parkinson law states that expense rise to meet income; that means your needs increases to equalize your income: for this is the reason some of us remain poor despite salary increment in our work places or retire without financial security.
Psychology says spending money on your loved ones or friends, yields more happiness and satisfaction than spending it on yourself. But as long as you’re a victim of Parkinson law such satisfaction won’t be realized. Thus there’s need for you and me to tame our spending habits, save as much as possible and be good financial managers.
First, you need to be frugal in your spending. This doesn’t mean being stingy. But being careful with every shilling and questioning of every expenditure.
Second, delay every important buying decision for a week or several days. Try to see if you’ll survive without the item or not. Distinguish between a need and want. Don’t go for luxuries but comfort because that’s what you need to live a comfortable life.
Third, in every income, take a certain percentage and invest it. For instance you can decide to invest 10 % of your income or even little than that. Moreover have a principle that the more you earn the more you invest. At the end of the year you’ll have enough for yourself, friends and most importantly be a creditor than being a debtor.
As I conclude, in life you should have a financial goal or target and remember life isn’t only making money but making a difference. It’s about changing lives. If you don’t do this you’re not worth living.