People needs to understand that there is a reason why people sacrifice time to study finance and management as a skill and a course. If it were something that is an abstract of natural knowledge, it shouldn't be that hard to cultivate. Managing income has never been about how much knowledge a person has/have because even the most knowledgeable people in this field find themselves struggling with bankruptcy. It is all about having a mind that is willing to do the needful regardless of the odds.
Which is one of the reasons why I admire McGregor's theory X and Y, not entirely focused on it but in one of its argument, it partial describes human being as creatures who would often choose pleasure over work, which is the natural nature of human being. It translates to the fact that for anyone to manage their income effectively such a person must be willing to deprive his/herself cravings. It is a game of the mind, knowing the differences between needs and wants, no matter how hard the line that differentiates the two tries to blur.
For most part of my life, I have hard to manage my own income myself, the reason is quite simple. I often say everyone is a mirror of a system, so am I. Unlike most kids, I'm a product of a boarding school, in a place like this you will have to learn how to take care of your own needs in the absence of your biological parents. The human mind is not built to be easily comfortable with being uncomfortable but with right amount of pressure, it evolves and adapts to survive.
Being a product of a system like this, I understood the nature of mankind and my surroundings at a very young age. Instead of allowing it to drive me insane I chose to learn from it. In those days, our parents will definitely give us some pocket money along side some provisions just in case whatever food they give us is not enough to get by. Most children would give their money to hostel masters to avoid theft, I always chose to keep mine, I refused to depend on others for security.
Not because I'm trying to be brave or something, I understood the fact that there will always be when I needed my money and those people might not be within arm's length in my time of need, moreover I wanted to cultivate my own saving habits. So I continued to keep my own money despite not being fully equipped with how to save money properly but the more I try, the better I get at it. In that moment I learned some vital lessons turned into principles that has stuck with me throughout my life.
The first is, if you cannot starve yourself in the face of your desire, you would never be able to manage your income. If you can't deny yourself some level of comfort, just to achieve some desired result, you won't be able to control the urge of spending. Make yourself comfortable with being uncomfortable this takes time but the thing about the mind is that it picks up habit easily as long as we stay consistent with it. Slowly you will begin to cultivate proper income management habits to the extent that it becomes a natural attitude of yours, instead of just a skill.
Secondly, tomorrow is not promised, money is no one's ally. People treat their income like it is something that would stay consistent forever, the next five minutes could change everything and all you will be left with is what you have been able to accumulate. So it is wrong to manage one's income without the thought of tomorrow. People are always advised to live in the present, it is a fantasy. The present is an illusion, the past few seconds is the past and the next coming one is the future, whatever exist in between is societal construct created to make us feel in control of some portion of time but sadly we are not, we can only control how we make use of it and how much effect the passage of time have on us.
Lastly, Understand your behaviour towards your income and devise a plan that suits your personality. It is great to learn from people but there are times when whatever works for another person might not work for you. Instead, study yourself and never be too ashamed to face the truth. You are a lousy spender, accept it and find a way to control it using the most effective way possible that suits your personality, trying to force other people's strategy on yourself without understanding yourself will only lead you into depression, understand and train your mind before you embark income management.
This write-up was inspired by Indiaunited contest titled "How do you manage your income" in indiaunited community.
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