Strategies to Manage Personal Income
Subsequent to the deduction of taxes and other statutory payments the income earner must manage his money to maximize its use. He must exercise and develop habits of careful spending and saving techniques. A good money manager will budget.
A budget outlines how much of an individual’s income is to be spent on his various expenses; it disciples an individual to live within the constraints of his personal income. The process of preparing a budget involves the record keeping of past expenditures, and making decision based on these about future expenditures. Priorities must be set to meet basic needs and a systematic plan for savings to achieve future goals.