MAKING MONEY MOVES

Cardi B, in her hit single Bodak Yellow, gave us the iconic line “I make money moves” and we’ve adopted it into the fabric of our society like it belongs. We all claim to be making money moves but how are we doing that? Are we financially literate at all? Are we simply seeking opportunities with more zeroes on the check to have more disposable cash? Do we know how to live within our means? Are we making money moves to improve our quality of life or to show off on Instagram and Snapchat? A friend of mine sent me a video and PowerPoint presentation on the importance of financial literacy and it was a eureka moment of why our generation is almost always broke. You should really have friends like mine, to begin with. Friends who contribute to your existing knowledge.

Maslow’s Hierarchy of Needs (read up on it) touches on the difference between wants and needs. In brief, a need is sustaining while a want is entertaining. Ponder upon that statement carefully, before you proceed, because I’m about to drop some financial gems like never before. For all the net monthly income you earn, draw a budget. In that budget, allocate 10% for savings, 10% for food, 20% for housing, 10% for transport and entertainment, 20% for school fees (you may not be contributing to someone else’s education yet so invest in your own education), medical, investment and emergency each take 10%. That makes up for 100% of your monthly budget. If you notice, only two of the budget line items are wants; the rest are needs. Now, get a piece of paper or open up a spreadsheet on your laptop / phone / tablet and input your net monthly income, then calculate the percentages. On another sheet, calculate the percentages based on your current net income and expenditure. Compare the two. Are you living within your means? Do your wants outweigh your needs? If you were a business, would you have broken even? Would you be making profits or losses? Would your business be sustainable? You are a business. Are you making wise business decisions?

Financial literacy is the cornerstone to financial independence, and it should have been an integral component in our education syllabus. But here we are. It is one of the most overlooked yet important lessons in how to achieve personal growth without unnecessarily spreading yourself too thin. We all want the good life but is it achievable and sustainable on our net earnings? And is it really necessary for us to buy things we don’t need, with money we don’t have, to impress people we don’t like? That’s a quote by David Ramsey. Really think about how you make money, your net worth, how you spend it, your sustainability and lifestyle. Write down what you need versus what you want and budget accordingly. Start your journey to financial independence and self actualization there. You are just a few budgets and spreadsheets away from financial independence.