A Fit Financial Life 📈💰

 A Fit Financial Life

( A series)

Introduction: 

We’ll be talking about what a fit financial life is all about and everything that comes with it, the steps to take, and how to cut down on making expensive mistakes that will brutally affect your finances.

We’ll be having guest speakers from all niches and of course, it’ll be an interview, written and documented to be accessed here.  

However, before we proceed let's talk a little about what Finance, Financial life, and a fit financial life mean. 

Finance: 

Finance in this context refers to the monetary resources and matters of a State, Organization, or individual.    

Financial Life (Personal Finance): 

Your Financial life is everything that goes on in your life, that requires the use of finances, from planning to saving, spending, investing, etc.  

A Fit Financial Life: 

A Fit financial life also refers to a healthy financial life, having this entails reaching to fulfill your individual goals and desires, and coming up with a healthy scheme to aid all these passions in a way that won't negatively affect you and your finances. To make the most out of your finances (earnings and savings) you need to learn to differentiate between good and bad decisions and make smart money moves! 

Let's proceed, 

One important characteristic that takes the front page of a fit financial life is the ability to distinguish between “Wants” and “Needs”.

Differentiating between wants and needs.

 

Everyone supposes there's a fine line between WANTS and NEEDS but the truth is that occasionally the line is very thin and a person might mistake one for the other or even assume that all are needs. 
The moment you begin mixing them up, there and then you start laying the foundation of a soon-to-be annihilated financial life.  
At this point, a lot of people are already wondering about what they can deem to be a want or a need. Let's proceed to their definitions to give a clearer view of what they are and their differences. 
 
What can be described as “A WANT”

Wants are desires, longings, cravings, fascination, etc. They can either be for interests, services, goods, feelings, and other things we would like to have but do not need, in other words, that are not a necessity for survival. 
 
While on the other hand;
Needs are things we must have to survive, such as Food, Water, and shelter. These are the basic necessities of life, every other thing comes secondary (but keep in mind that we have both primary and secondary needs. Remember everything must be scaled). 

A lot of people say things like “why wait on a want when there will always be time to satisfy a need?” 

Now, I’m asking this question in reverse, “ Why wait on a need when there will always be time to satisfy a want?

Let’s take this dialogue as an example: 

Mr. A: I have just been paid my 3 months salary of two hundred and fifty thousand naira. 

Mr. B: wow that’s good, so what do you intend to do with this money 

Mr. A: I have this party to go to this weekend, and I’ve made a budget of one hundred thousand naira, to spend at the party and I’ll also be getting new clothes and accessories.  

Mr. B: Ahhhh I thought you told me your rent will be expiring next month and that you’ve run out of foodstuffs at home, what about that treatment you were to pay the doctor for? 

Mr. A: please I don’t want to think of those things, after the party I’ll think of it. 

 

This is a clear example of a person’s misplaced priorities, he has just prioritized his wants and desires over his needs. 

One simple method used in scaling and categorizing your wants and needs is to examine and analyze the amount/level of damage that will be done if you fail to respond to that particular situation on time. 

And when I say damage, I mean all damages, like being given a quit notice, losing out on a very profitable venture, etc., not the type of damage you make up in your head like when you go through hoops to buy a new shoe for a party to evade people gossiping about you not wearing new clothes, things like these are not categorized nor recognized as damage. 

There's a fine line between A NEED to pay your house rent and A WANT to buy a new shoe, though there are people who would still defy the very prominent line.   

 

There's a thin line between the need to get 7 different shirts and the need to use the money for 6 shirts to buy a pair of shoes. When it comes to making decisions like this nearly everyone has issues, but simply remember to make use of the simple scaling method mentioned earlier, this would help you make decisions easily and faster. 

When you make use of the scaling method you might discover that buying the shoe is more important at the moment than buying the shirts and vice versa. 

Remember, always SCALE! 

See you on our next session💪

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