Managing Personal Finances

Your earning and spending habits give an accurate reflection of how your life is. It’s a mirror of your priorities and values. That’s why it is important to modify your finances to match the future life you are getting ready for. I hereby share some insights on organizing finances.

The moneys you have flow either towards you (income), away from you (expenditure) or stagnate around you (savings, assets & liabilities). Some  people hardly think about their cash-flows, while others are frugal, conscious of every direction taken by their money. All moneys circulating among individuals have a pattern, and the difference between your pattern, and that of another person is the management. Good financial managers have the skill do more with little money. while poor financial managers hardly have enough. I cannot tell how good/bad a financial manager you are without observing your financial patterns. I will however share how I organize my finances as my insight to you through this post.

Upon realizing that any idle money tends to slip off my fingers, I decided to have all my moneys, be they little or abundant, have a purpose tagged on them. I call these tags accounts. I understand that money language is confusing, and math is stressful. And since we all want good things, I decided to go simple in my financial understanding in the hope to do more with my finances. My accounts include: Master Account, Goals Account, Checking Account and Investment Account.

Master Account. All non-specified and periodically non-utilized moneys from other accounts pool here for distribution. No money stays idle here. It must be somewhere and for a specific purpose. The moneys are distributed as follows: 70% goes to regular spending, 20% to goals and 10% for investment.

Checking account. It holds moneys for spending on necessities, leisure and charityThe account is refreshed monthlywith non-utilized funds going back to the master account for redistribution.

Goals account. It holds resources for fulfilling all my ambitions: attending conferences, purchasing utilities, purchasing books, etc. I acknowledge that resources are always fewer than opportunities to gratify desiresTherefore, I practice minimalism, regularly listen to vision podcasts and  then review my spending as often as possible. Additionally, I assess my products for use valueservices for time value and new knowledge for insight value. These moneys circulate among themselves depending on priorities for each desire. It’s value is  quality over quantity.


Investment account. I won’t speak much about this account, reason being I am limited in experience on investment. This account gets 10% from my account, courtesy of the book “The Richest Man in Babylon,” which advises one to start their purse to fattening by always saving at least 10% of all their incomes. In the future, I can use such an account for assets. Meanwhile, I enjoy bank interests from this account.


In conclusion, financial management is a dynamic activity with its own ups and downs. You get wiser in managing your finances as time goes by. And there is no one-size-fits all; yours may eventually be a better model than this one I have shared.


Thank you for reading this post. I shall be posting another early next. Until then, best wishes from me :).


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