Have you ever thought of starting the year or month with a solid financial goal? If yes, have you remained consistent with them?

Hello, Millenial Readers,

I am happy you are here again to learn and in today’s article, we are going tackle the above-mentioned questions.

Let’s begin by first defining what is a payday routine. It is a series of activities one does everything money comes in. Note, this is not only for the employee people who receive fixed money at fixed dates whether daily, weekly or monthly but also for those in businesses where the flow of money is uncontrollable, it comes in depending on the nature of the business and the demand in the market. Whichever category you fall into, this is for you and this is why considering a payday routine might be significant in achieving your solid financial goals;

Checking the Previous Budget and Having a Budget for the Next Earned Money

How does one initiate this? Buy having a written budget of the spending anticipated per month. So every month one reviews to see where all the money has been spent and how much went to each spending for example transport, house bills, food, Internet,  entertainment,  investment,  debt payment etc. Checking where literally every coin went helps analyse where things might have not gone right financially and be able to correct them in the next month. After checking and closing the previous budget, one can prepare the budget for the next month. Taking into consideration the errors that were made in the previous month to avoid them. This should be done a day before the payday or on the payday before spending any shilling. This might be a bit tiresome, keeping track of all spending but hey! for you to fix your finances you have to.

Adopt the Pay Yourself First Scheme

What does this mean, it is first channelling your money into investments that you have and savings then channelling the rest into other needs. I know most people the norm has been the reverse of this and here is where the trap is. The very reason why finances become difficult to manage. The temptation to sort out needs first before other things are usually high for most people. The risk of doing it this way is that there is usually pretty no or little money left to go to either savings or investments because by nature needs are too many and endless. So it is safer to start with savings or investment first as a priority, if it is hard, you can opt to have your bank automate it so that the money you receive is purely for spending. Paying yourself first.

Reducing Debt

This is for those that might have loans borrowed for various reasons either for business startups or advancement or for use. It is not usually bad to borrow loans however have a plan so that it becomes easy to pay it back. So at this stage, list the debts you have in terms of priority, which one can be paid down first and which can still wait. 

Pay Necessary Bills

This is the important expenses that one cannot avoid at all costs. It might be rent, groceries, transport, communication,  house bills etc. These bills have to be paid to enable you to be convinced as a human being as you keep looking for money. Pay them first.

Plan for the other Needs with the Remaining Cash

Now this is what should always come last. Here is where the actual catch for most people is. Now you know, don’t be trapped again in the mess. I know it’s not easy but doing this helps in controlling the wants that you have but can actually do without and save or invest the money instead. For example, throwing a big birthday party, going on an expensive vacation, buying that expensive wig or skin care products or going out with friends. Whereas having these wants might not be bad, do it only and only if your money can allow it conveniently. That is why the Pay Yourself First method is important to help reduce the risk of using the money for things that are less important that might be risky to your finances. 

Reconcile your Accounts

Last but not least, this is making sure the records you have about where your money is being channelled to and its progress matches with those handling your money for example the banks. This helps note any error in records and also keeps you in knowledge of how you are progressing especially in terms of savings or investment.

Whoooo! I know this might sound like a lot of work however for you to be consistent in your financial goals no matter how much you earn, you have to show up for yourself and be an active participator in the management of your finances. I have a deal before resting my pen, how about taking yourself on a money date whenever you want to do this just to make it a little fun and enjoyable huh? Just remember to budget for it as well ok. It is called the road map to be your own Chief Financial Officer, Gen Z would slang it as  #myownCFO. How beautiful. Byeee.

Ms Emmie ❤️❤️.