It slowly gets to the much-anticipated end of the month so you can take home your pay. Then it eventually reaches, you get paid, and all of a sudden there are a million and one things to do…whooza, your account is empty again after the first week, and this keeps happening month after month.
The illustration above is a typical tale of many workers, and you hear things like “if only I earned a bigger salary”. The sad truth is you could probably be in the same mess even if your pay is increased. Having the financial wisdom to effectively manage your salary even when it seems so little would help you when you have a bigger pay; you won’t learn how to manage your resources when you’re at the top….IT STARTS NOW.
5 ways to maximise your salary:
1. HAVE A BUDGET
Having a budget is really ideal as it would help shape your spending habits. Reflect deeply on where your money should go; don’t focus on all your needs and issues at once, because they would keep coming thick and fast. However, it doesn’t just end by having a budget, be disciplined enough to stick to it.
2. MONITOR WHERE A BULK OF YOUR EXPENSES GO AND TRY TO REDUCE IT
Keep track of where many of your earnings go and try to reduce it where possible, especially if it’s spent on miscellaneous wants. If you can achieve this then you have succeeded in increasing your pay.
3. THEN SAVE
Having a savings culture even with a little salary means you can have that financial ability to handle a larger pay. Save for projects, save for other businesses and save for emergencies.
4. PAY YOURSELF TOO
It’s never wrong to pay yourself. If your take home pay goes to everyone else but you, you might feel robbed at a certain point and have an impulse to spend unnecessarily just to satisfy your craving. In order to justify this or curb out this future craving, learn to pay yourself; it’s always beneficial to pay yourself; it makes work feel rewarding. But be careful not to overpay yourself, 15% of your salary would do.
5. STOP TAKING LOANS
Loans would definitely leave your account in the red after a week of receiving your salary. Never have that habit of borrowing money; your salary would never recover from it, months after months.
Your salary might be big but still be little; your salary might be little and be very sufficient. It all depends on the path you choose.
Jake