LBI—Living Below Your Income.

Sequel to our former post, we have been able to establish that LBI is the most appropriate. This is due to the fact that they live within a strict budget; they have a firm financially disciplined life style, they have an organized finances and build up savings by putting aside an amount consistently on a monthly or daily basis, also, they even have wise investment via making extra income on the side line, this is a sure way to being wealthy.

Wealth is built through a disciplined life, I must emphasize that this will not be an easy ride but with consistency, it will become a way of life. You must work with a balanced and tested budget as some budgets are not workable. Have in your budget funds allocated to charity and never spend beyond it in a month and in case you have to go beyond it (in extreme cases) you are having it as an advance from the next month’s quota for Charity (we will discuss budgeting soon). For so many people the major problem is learning to say ‘NO’ and this is key to Living Below your Income, most people I have discussed with say the same thing that is ‘They cannot turn people down’, and what I say is you must be able to say NO especially after exceeding the charity budget for the month.

LAI—LIVING ABOVE YOUR INCOME/ LWI—LIVING WITHIN YOUR INCOME

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Over the past week, I have had to answer a lot of questions from blog visitors about the three categories that I talked about in my last post, if you miss it you can get it here. I will take out time to explain in details about the three categories, starting from the LAI—Living above your Income, I must stress at this juncture that to have a grasp of our financial life,  we must be ready to take responsibility of our spending habits. Worthy of note is the fact that  we all are looking for financial liberty, freedom and stability.  Also, it is not only low income earners that need financial literacy, even the rich who have poor fund management skills do.

Your Income and You

Hi, take a few seconds and calculate the total of the income you've earned in 2014? Let’s move another step further; cast your mind back to the financial plans you had at the beginning of the year, the question is how many of those plans have you achieved? The common saying everywhere is: ‘ I earn so little’ but  the truth is there are so many people that earn far less than you, but have achieved so much with what they earn through the power of savings and investments.

I categorize people into three when it comes to money matters and they are:

LAI—Living Above Your Income,

LWI—Living Within Your Income,

LBI—Living Below Your Income.

Wait, before you quickly jump into conclusion on which category you belong, let’s look at the characteristics of each:

Welcome to #PersonalFinance with Babat.

Culled from www. Cluebunch.com.

My name is Babatunde, I am in my thirties and so far I have seen things: I have seen the rich becoming poor suddenly, I have seen few poor becoming rich, and some middle class downgrade into the poor community. I have seen men live from pay check to pay check without any savings whatsoever, I have seen people sell their properties because of (un)avoidable financial obligations according to them, I have seen people been thrown out of their homes due to debts and overdue rent, I have seen children stop schooling or being withdrawn from  good schools to just ordinary ones, I have seen marriages fail and some ended up in divorce over financial misappropriation , I have seen the hungry and the desolate, the homeless and the cloth-less, sad to say I have also seen men on dung hill, I have seen men live in abject poverty, I have seen men do things, both good and bad to acquire this legal tender called money, I have seen men forsook shame so as to eat and provide for their family.