Basic HTML Version
Feature
What are the strategies for living within one’s income?
1. You must have a financial budget that is
developed on the SMART (specific, measurable,
achievable, realistic and timed) principles;
2. You must dedicate a certain percentage of your
monthly income to savings;
3. You must not buy anything or spend any money
for which you have not budgeted;
4. You must diversify your investments in terms of
industry, sector, and realizability;
5. You must cap your gearing level (DSR) at a
maximum of 20%;
6. You must have an alternative source of income;
7. You must have a well articulated and robust post-
retirement or post-exit plan;
8. You must desist from indulging in income drains:
women, alcohol, clubbing/partying, etc;
9. You must not carry idle balances of cash on you
or at home; and
10. You must be consciously frugal.
STRATEGIES
FOR LIVING
WITHIN YOUR
INCOME
BY MALLAM F. K. SANNI
10
What is income?
Income is the gross amount of money
that accrues to you from a job,
business or investment. It is measured
in monetary units. The typical income
of a salary earner will comprise the
following: monthly salary, allowances,
bonus payments, investment income,
etc.
Why is it difficult to live within one’s
income?
1. Failure to budget leading to
spontaneous and unplanned
spending;
2. Failure to prioritize needs leading
to buying the wrong things;
3. Failure to play in your league
leading to overtly ambitious
spending;
4. Failure to live a disciplined life
leading to extravagance; and
5. Failure to save for tomorrow.
14 | The Lion King