Beyond Chop Money: Mastering Your Finances and Achieving Your Goals
Ever feel like your money disappears before you even see it? You’re not alone! They say the system is rigged. No matter how good you are with your money, it feels like there’s never enough. Everything keeps getting more expensive, but paychecks stay flat. So, some young people are saying “forget it!”
They’re living for today and spending every dime. Why save for a house or car you can’t afford anyway? They figure, “Eat, drink, and be merry, for tomorrow we work again!”
Sure, living paycheck to paycheck might feel good now, but what happens if the music stops? If you lose your job or your business takes a downturn, you’ll be left scrambling. That’s why it’s important to have a plan. Let’s dive into some budgeting hacks that can help young Ghanaians take control of their finances.
Adopt the 60-20-20 rule.
It might sound boring, but documenting where your money goes is the first step to understanding your financial habits. Think of it like a treasure map – it reveals where your hard-earned cash is flowing. This awareness empowers you to make informed decisions and save towards your goals.
If you are ready then give the 60/20/20 rule a try and see how it can help you achieve your financial goals!
Needs (60%): This category covers essential expenses for everyone. Think groceries, utility bills, and any necessary maintenance costs. It’s important for individuals to identify their unique needs and prioritize allocating funds accordingly.
Investments (20%): While traditionally this 20% would go towards financial investments, the current economic climate in Ghana suggests a different approach for young people. Instead, consider investing in yourself! This means setting aside money from your salary to pursue that trade or new skill you’ve always wanted to learn. By investing in your own potential, you’re building a secure future for yourself.
Wants (20%): The remaining 20% can be used for discretionary spending on things one desires, but aren’t essential for survival. This could be anything from entertainment to clothes, but it shouldn’t come at the expense of needs or investments. It could be even allocated for the Detty December jam or road trips out of Accra.
Below is a sample of an excel sheet on the first step to tracking your finances.
https://docs.google.com/spreadsheets/d/1kMzied-qUui6aXYC6kjQIgxE4tudlyLwYQAhGA-CJN4/edit?usp=sharing
Taking control of your finances doesn’t have to be complicated. By adopting the 60/20/20 rule and tracking your spending, you can break the paycheck-to-paycheck cycle and invest in a brighter future. So, what are you waiting for? Grab your phone, download a budgeting app, and start your financial journey today!