OSGLIVESERIES WITH MONEY AFRICA
Topic: Sustainably building wealth.
Be deliberate with your money. And have the right mindset.
Personal finance is 80% your mind 20% your actions.
Budgeting is a critical and essential part of your financial life.
You need to learn how to plan your money
Treat your self as a company and know how much you get and how much you spend.
Draw a budget
A budget is basically telling u how u plan to spend your money.
Determine how much u make then you plan your expenses.
There’s a principle in budgeting called the 50, 30, 20 principles.
50 % basically expenses on essentials, things you can’t live without, e.g rent, food, light, insurance, petrol, health.
You get to spend 50% of your income on these then 30% is for non-essentials like luxuries and personal benefits. While 20% is for Investments. This is more like a benchmark.
But it is different from person to person.
Depending on what works for you.
Identify how much you want to invest
Write down how much you earn, then write down your expenses, then Invest.
What are your investment options?
It is not advisable to invest all your money in a place, you can spread your money by putting 35% in a place then 65% in other investment plans.
When you invest, you think long term.
You can invest with little.
Money market mutual funds.
Money market mutual funds is a fund that is created that invest in multi treasury bills, commercial papers, and government bonds, these are the things the government sells to us when they need money, and then you get a return and a percentage. It is a way you invest.
Anytime you invest, it means you have paid yourself first.
It’s never little to invest and invest for long term.
Personal development is a way of growing yourself, building skills and generating income for yourself.
Starting investing from where you are with what you have.
No money is too small to invest and manage your income.