As you grow up and become independent in all corners of your life especially the financial part, you realize that most of things escaped you. You realize you don’t know much…about anything. When it comes to money, you are preoccupied with getting it and keeping it that sometimes you lose focus on what matters. However, though money is important in our lives, we don’t talk about it. We don’t know how to handle it, how to spend it or save it and most of the time it levels up our anxiety.

When you are a creative, handling finances can be a bit challenging. Your incomes are irregular and variable. One week you get many clients, the following you get few or even none. In today’s post I’ll share with you a few tips I use to manage my income. Knowing where your money comes from and where it goes will help you achieve your personal financial goals, save more and decreases the likelihood of overspending. These tips are easy to understand and work on. They help me stay sane and safe even in hard times.

  • Define your income

Analyze how much you earned in the past three months. If your income was fixed, this is easy. Just write it down. If it varies, I suggest you consider the minimum you ever received.

  • Define your expenses

Separate them into categories: the fixed expenses and the variable expenses. Or the needs and wants. The fixed expenses are those that are needed in everyday life. They include food, shelter, water, electricity and some others like transport which depends on individual way of living. The variable ones are those you want but can live without. They include entertainment and clothing.

  • Make a budget

This is a detailed plan of how your money is used. On a sheet of paper, write down the minimum income you expect per month.  List down all your expenses and subtract them from your income. If there’s a positive remainder, then you are in a good position. You can save the remaining amount.

-Related article: what you should know about a budget

  • Be disciplined

Follow your budget. It may be hard at the start but it is worth it. It will help you to avoid unforeseen tragedies and minor worries like missing the bus or falling sick.

Those are the steps I use in managing my money. How do you do it?

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