FINANCIAL LITERACY: a panacea for spendthrift and spending for gratification

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Financial independence means having enough income to pay for one’s living expenses for the rest of one’s life without having to work full-time. This independence some people make it through saving and some through investing in a profitable business for over year and generate income without daily supervision. And, a spendthrift is a person that spends possession or money prodigiously and who is extravagant and recklessly wasteful, often to a point where the spending climbs beyond his or her means.

A person who is a spendthrift often spend for gratification where by people say good things about him or pay homage for the kind of luxurious things the person use. This kind of habit can lead to poverty if proper care is not taken. And it is not too late for a person that wants to make a goal. If you are a spendthrift or a kind of person that spends for gratification. Here are some steps that can help you do financial independence:

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  1. IDENTIFY CLEARLY INCOME AND LIABILITY IN ALL YOUR FINANCES AND STRIVE TO EMPOWER THE WEALTH SIDE

The income you earn from the salary or the investment must be noted and your expenditures must be identified not to be on the deficit. Managing both income and expenditure will show where you need to pay attention and allow the accumulation of wealth side not the burden.

  1. MAKE FUNCTIONALITY PRINCIPLE: (THE CENTRAL DECISION FOR PURCHASE)frugality is critical in financial independence and after economic productivity i.e. not making buy on what you don’t need or you go for what you need most first and not buying things for gratification.
  2. TALENT WORK Are you good in Art, Painting, Beading, Private lesson e.t.c, discover yourself this is a part of you that doesn’t need anybody approval to use, it is your endowment you can bank on it.
  3. INVESTMENT PRINCIPLE Adopt the principle of prodigious accumulation of wealth i.e. long term accumulation of wealth at a tender age because the age will not always be on your side the more work and savings you do in your youth days will bridge the gap in your aged days when you will not make as much as you do before.

Financial independence is a must learn by every person who don’t want to live in poverty for the rest of their life

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Posted in PERSONAL FINANCE.

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