Managing Your Money, Making it Do More –  What to do About New or Unplanned Financial Committments

Sometimes, inspite of your well planned out income and expenditure, you may have some unexpected need to spend which could be due to an impromptu incident requiring your urgent attention. At other times, it could be due to some marketing campaigne that has stimulated your interest. There could be several other reasons. What do you do under such circumstances.

First of all, I’d say having a well thought out budget helps assure you do not encounter such situation. Even if it does happen, there is something you can do. The good thing about financial planning and budgeting is that the more you do it, the better you become at ensuring every aspect of your financial issues are addressed. Taking your entire financial planning seriously is an important place to begin. Making both mental and written note of your spending helps you know the areas to address in your plans.

Ensure you plan both your income and expenditure thoroughly. Where an unexpected or new financial obligation arises, simply consider if you can fit it into your miscelenous spending. So, you must first have one. Then consider the following: can someone else address this new financial obligation in  your stead? Can you share the obligations? Can you borrow? Can you simply say ‘no’?

If not, can you shelve it for later? Can you do some now and the rest later? Is it really you who should be handling this new financial obligation? Was it an omission on your part? Can you replace any other obligation with the new one and solve such an obligation later?

I strongly believe that if you do a thorough plan, you will not likely experience some of these new financial obligations.

However, in an emergency which is not yours (even that can and should be planned. Simply have some funds set aside for giving), where you do not have, please rally round and raise some help if you can. Avoid deeping into your financial plans as much as possible. If there has been a major change in your priorities due to circumstances beyond your control: This could include cosmic changes, money market reforms, politics, global economidc changes that impact on spending, value of money, investments etc; you will obviously need to move with the times.

Here is a rule of thumb to have, never work alone even financially. Have a professional advisor or friend, a good spouse will do (not effective if the maraige is weak. For instance, couples who do not trust each other with their incomes or in one where there has been shenanigans, such will need help to work together financially). The bigger your income, the more you should ensure you have it in safe hands. Watch it regularly. Be generous but even  that should be planned. For instance, a decision to give a tenth of your income to philanthropic activities will easily take care of new and unplanned financial obligations or committments.

Do not forget that the goal is to make your money do more so do allow it do so.

As much as possible, be strict rather than otherwise in your spending. Yes, be careful not to be ungenerous but you want to avoid spontaneous buying unless you already planned such. That is, you have made provisions for spontanuity. This helps you remain fun but still organized. This means that you should keep your spontaneous spending within budget as well.

I hope you’ve found today’s piece useful.

Wishing you a happy time preparing for the yulitides.

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Have a splendid weekend