The significant reason to review your spending habit.

While inflation continues to hit significantly, and prices of goods consistently increase, the worth of the basic salaries made seem not to be sufficient to meet needs any longer, but the problem is, we may be spending so much and not even know where exactly the money is going. The year is still fresh and last week, my friend was trying to calculate how much he had spent so far this year, and he realized he had spent 100,000 Naira which is about $220.55, on feeding, he was so angry because his eating habit has been really poor, as a result of the bills and debts to be paid, he decided to reduce to a drastic level, the amount he will be spending on feeding regularly. So, you can imagine how shocked he was when after all the drastic managing skills he put into place, he still ended up spending what he considered a high amount on feeding.

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I had to make him realize how expensive things are right now and how feeding is a major necessity we cannot afford to ignore, but one major lesson I learned is that, we need to consistently review our spending habits/patterns. For my friend, if he had not been reviewing his spending habits consistently, he wouldn't have been able to discover how much had gone into feeding him.

Instead of having a long list of financial plans at the beginning of the year, month, or week as the case may be, and not going to it again after that, may not be so healthy. It is better to review your goals and plans constantly every now and then, this will help you determine whether you are making any meaningful progress or not.

If you are going to make major progress with your finance, it is important for you to review your spending habits and while you work on doing that, here are necessary considerations you should look out for;

Debt Review: Our savings will consistently get affected if we still have unpaid debt, it is better to always pay off debt before making any major investments. In order to achieve this, make a list of the available debt and begin to pay them off gradually and consistently following the payment plan you have created.

Do not overspend: Overspending is a terrible habit that leads to nothing but debt issues, and money problems that would require long years to resolve.

Have a budget: To create a budget that works, we ned to list out first every stream of income and expenses we have, differentiate monthly earning from expenses, and with this, you will be able to identify what you are working with and how much you have left.