5 SECRET MONEY MANAGEMENT TIPS FOR A WORKING CLASS TO GAIN FINANCIAL FREESDOM IN 2023

Working class are social group of people who earn a certain amount of money monthly or even
weekly, they are often being paid for the hours or days they work and usually do physical work.
Sometimes, the money they earn depends on where they work, their position or qualifications.
In most cases, the higher the position or qualifications, the higher the pay.
Most of the working class struggle to control their finances, they find it a bit difficult to gain
financial freedom because they always feel they don’t earn enough after a period of time. Most
of them even spend all their salary before month end and tend to borrow money to survive the
rest of the month before their next salary.
These financial tips will be super helpful to you if you find yourself in this field ;

1. Create a budget and stick to it:

Creating a budget is one of the most crucial ways to have
financial stability, it ensures you are able to settle important bills—such as rent, food, utility etc.
Budgeting helps you to organise your finances and ensures you are not spending more than
you earn, because it allows you to plan ahead for both short term and long term expenses.
Good news is, it is a skill that nobody is born with. So the earlier you learn and apply it the
better. Budgeting is not so difficult, sticking to it is. You need to decide wholeheartedly to stick to
your budget no matter what. It is an easy way for people with any type of income and expenses
to keep their finances in order.

2. 50/ 30/ 20 rule:

Having read about budgeting in number one, this rule is an easy budgeting
method that can help you manage your money wisely.
How does it work? It is simple and convenient, all you need to do is divide your salary into three
spending categories after deducting your tax. 50% for needs, 30% for wants and 20% for
savings or paying off debt. Simple right?
This rule will make budgeting easier and convenient , by keeping your expenses balanced, you
can put your money to work efficiently and know where your money goes.
You might be wondering why you can’t save more than 20% or why your need is 50%? Truth is,
needs are expenses you can’t avoid, the primary reason for working is to be able to make ends
meet. These needs are things you can’t live without so making all necessary payments will only
make it easier for you to scale through the month without the need to borrow extra cash.
These needs may include
– Rent
– Transportation
– Insurance (Health, car, or even pet)
– Utilities ( water, gas, electricity etc)
– Minimum loans repayment
Food (very important)
Although the budget may be different from one person to another, if you find out that your need
is more than 50% of your income, then you might need to lower your expenses a bit by making
some changes to bring the cost of things down. This may be finding some new place to buy
groceries at a cheaper rate .
After taking care of your most basic needs then 30% of your income can cover all your wants.
Although they are non essential things and things that you can live without, yet you still need to
enjoy life. Taking yourself out for dinner or going to see your favorite movie once a month is not
too much. After all, you had worked for the money.
Wants may include;
– Clothes shopping
– Dining out
– Holidays
– Gym membership
– Entertainment subscription etc
If you think you are spending too much money on wants, you can always cut some things off.
Following this rule doesn’t mean you cannot enjoy life, it simply means being more deliberate
about how you spend your money and finding areas where you need less spending or where
you overspend.
Since you’ve taken care of your needs and wants, the remaining 20% can be in your savings
account or emergency fund or it can be used to pay outstanding debts — although, minimum
repayment are needs, but any extra payment reduces your existing debt and future interest,
therefore they are considered as savings.

3. Having a side hustle:

you know what one source of income does? It puts you in financial
bondage and never allows you to grow financially. I said this before in one of my articles, there’s
no downside to side hustle, there are only benefits to having more than one source of income.
Financial freedom is the goal and when you receive paychecks from more than one source you
will realize that it will allow you take more chances in your regular career, more income actually
means more options. Side hustle means extra cash and this can be very helpful especially when
you’re planning a major purchase—planning to buy a horse or when you want to invest in
something big.
Side hustle does not have to be stressful or demanding, it should be something that you enjoy
doing. Example of side hustle are — freelancing, affiliate marketing, online selling, blogging etc
All you need to do is start.

4. Invest in yourself:

Like I said earlier, in most organizations, the higher your qualifications the
higher your income. Even while you are working, taking online courses will expand your
knowledge about your career. Read the books you need to read. Take promotional exams.
Invest in yourself to the point that others will want to invest in you.
Read books on finances and you can also watch videos on finance too. Go to business
seminars, meet people in your field that are doing better than you are, learn from them. Just
make sure you are good at what you do.

5. Avoid impulse buying:

This is quite difficult to avoid especially when something you like is on
sales. The thing impulse buying does is that it puts you off track. If it’s something you really want
to buy you can add it to the following month’s budget, by doing so you are sticking to the budget
you set for the present month.