Keeping track of your finances goes a long to determine how well of you will become later on in life. This is where budgeting comes in and your understanding of some basic money-rules.

Knowing this rules for yourself also later reflects on your finances when you eventually start having a family of your own. This means you will be better able to give advice and plan money issues with your partner.

Although you might not be running a multi-million Naira business or earning hundreds of thousands now, learning to plan the little cash that comes your way now will keep you better prepared for when the big bucks start coming in.

Always remember money that is not planned for will literally develop wings and fly, so get planning with these 7 tips

1. Never forget to use the 50-20-30 rule

When it comes to money, planning for it before it gets into your hands is one way to ensure that it is properly disbursed. Immediately your pay check comes in or you receive payment for services you render, apply the 50-30-20 rule. This simple means separate your money into three portions; 50 percent for essentials such as rent, feeding, transportation and other essentials that you need on a day to day basis, 30 percent for your lifestyle needs such as travel plans, gifts for birthdays, shopping and other monetary obligations you owe to other people and 20 percent for savings. Never ever forget to save from what ever you earn because it is a form of security for the future.

2. Think before saying yes to anything outside your budget

Times will come when you will unexpectedly need to spend more cash than you are planning. When such occurs, never agree impulsively to money commitments that are unplanned. For the most part you will end up regretting  it and feel bad for doing a good deed eventually. Rather, take a second look at your budget and see if there are there things you can forgo to make room for the new spending especially if it is very important.

3. Learn to save the little change

Those 20, 10 and 5 Naira bills you tend to overlook are actually good money gong down the drain. Because of the current economic situation we tend to think ‘What can I even buy with it?’, but there a lot of things you can do with these spare change when you learn to put them aside. You might not necessarily have a needs that are 10 Naira worth now, but putting  aside 10 Naira five times is a different ball game.

4. Don’t forget to indulge in the little things

Skipping breakfast or a snack you have been looking forward to all in the name of saving is never a smart choice. In the end, you will most likely splurge on something more expensive and trivial compared to feeding yourself. The trick is to indulge accordingly; list out your guilty pleasures that cost you money and try to cut back on the ones that are least beneficial to you. This way you can get your cravings satisfied occasionally and still save on the unnecessary ones.

5. Focus on the future

Saving money is never an easy so you need to give yourself an incentive to keep you motivated. Focusing on the bigger picture such as the future benefits you stand to gain by saving will help you keep a rein on your spending. Think of it terms of practicing self-control now and getting to reap the gains later.