Top 5 ways to Reduce Financial Stress-Number 5 will shock you.

Top 5 ways to Reduce Financial Stress-Number 5 will shock you.

Hon Prince Sonnie is a young teacher who takes home 3000gh each month after all the necessary deductibles are deducted. He has a wife and two children- a son and a daughter. 

Jerry decided to apply his economics and mathematical knowledge in spending and preparing his monthly budget. He divided his take-home by the days of the month. He realized 100gh per day.

Spending beyond this threshold means bad news for him so they are economical with spending. After tracking his spending routine for sometime, he realized that each member of the family spends an average of 20gh each day. He's on course. The remaining 20gh goes to cater for utilities and other expenses. 

Everything was fine simple and normal until few months ago, his daughter got seriously sick and needed surgery. He went for a loan of 10000gh to take care of the medical bills. This truncated his take-home from 3000 to 2300gh.

The simple life got the were living got affected. To now keep up with the simple average life, he started going for salary advances (Overdraft) to complete the months. He now wonders how he was going to undertake the building plan he had. 

He had plans to pursue further studies. But he successfully spent all the money he managed to save towards it. He also wondered what he would do if another problem with such gravity should come his way again anytime soon.

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The situation in the story above is what I call, "Salary as a Maintenance Ration or Hand to mouth". Only keeping body and soul together but when storm blows, the story changes for a long time, if not forever. 

The 10000gh that someone somewhere makes in a day or can sit at a table and spend on drinks has disorganized a peaceful family for a period that looks like eternity.

As we grow, our problems grow with us, often disproportionately while the salary crawls behind. 

This summarizes the sad reality of the average Ghanaian teacher. Those without dependants may have slightly different story which may appear to be a little better until the dependants arrive. Those with more than 5 children but without any meaningful side hustle are feeling the heat.

Those who have extended family to cater for in addition to their nuclear family have worst stories to tell. Averagely, Out of every ten teachers you meat, at least 8 are on loans. Loans they took to do normal things. In fact, some went to Ezwe and Bayport because there's nothing at home. Eget, why.

Fact is;

1. Your employer is not paying you and your family members. 

You are being paid as an individual for the service you render. There's nothing like "payment by family size". If it were so, those with more dependants would receive higher salaries.

2. You might be struggling with finances. 

But the amount you receive is not entirely the issue. It is the size of your problems. Someone somewhere is taking half of what you're being paid and he's doing just fine. If you have a way of reducing your problems or slowing down on how they increase, do it.

3. No salary can ever be enough. 

If today, you should get a pay raise to 5000gh monthly, I can bet you will start going to 5000gh market. Your taste will change, your lifestyle will change. Expectations from society will change as well. You might be back to this very place of struggle.

4. Yo have to understand that your salary can't make you a rich. 

Your employer wants you to live an average life so that you can keep working for him. You are a teacher. Your salary only permits you to live a simple and normal life. You can't live extravagant life like those you see on TV. If you try, surely, loans and debt shall be your portion.

Here are some suggested steps to slow down the pressure on you;

1. Spend wisely. 

Everything you spend on must serve an important purpose. You might want to draw a budget on paper and follow it. If shouldn't be in your mind. You are not under any obligation to impress anyone.

2. Get an extra source of income. 

It's a must. If buying and selling doesn't work for you, learn a skill and provide services. Find ways to automate it so that people continue to get your service while you are away. Discover your potential. Solve a problem and get paid. Single source of income in this era doesn't help.

 3. Don't marry a liability. 

Choose a partner who is also earning or has a monetizable skill. If you earn 3k and your partner also earns 3k, that's 6k in the house every month. Better than the entire family depending on 3k. That's suicyde mission.

4. Make a conscious effort to live within your means. 

Be intentional about it. Don't allow your colleagues or friends give you pressure. They have their lives to live and you have yours. 

5. If you plan to save (which you should), don't wait to save what is left after spending.

Spend what is left after saving. A portion of your salary should never find its way out of the Bank. It is either you are living it in the account or you are moving it.