ISEGHE AJAYI 

Depending on a single source of income in this unfavourable economy is not sustainable owing to the unrelenting hike in the cost of commodities occasioned by unending inflation. 

The situation has continued to have a negative multiplier effect on the standard of living of the masses. 

But, the most hit are the common folks whose means of livelihood is nothing to write home about. 

There is no doubt that most salary earners rely on their monthly income which can barely sustain them and their families owing to the high cost of living, a situation that has seen some of them depending on debt for survival. 

It is crucial for an individual whose source of income is meagre to venture into alternative means of revenue if one desires to remain afloat in a hostile economy like ours. 

Being a salary earner is a good thing particularly if the pay is attractive and the job is secured. But then, having a financial focus which could be a long or short-term financial goal is better and would help you when you have nothing to fall back on in case of job loss. 

That is why, it is very imperative not to eat with your ten fingers as long as your take-home pay is regular and can meet your basic needs irrespective of the economic situation. 

But, if your monthly earnings can barely meet your basic needs, there is a need to venture into other sources of income to wriggle out of financial bondage or misery. 

But then, do you know that many people with attractive salaries are still in a financial mess due to bad lifestyles, lack of planning, and erroneous notion that the job will always be there, forgetting that retirement can occur at any time. 

To evade such, it is important, to begin planning your retirement, the moment you start earning income to avoid ‘story that touches the heart’ Besides, most salary earners while working do not think of their financial future which entails; investing in themselves to improve their financial horizon and life after retirement. 

Despite, the hardship that is associated with this present economy, there is still a need to have a financial plan to remain afloat. 

The under-listed tips will, however, help salary earners to work on their financial flaws: 

Lack of Spending Plan 

It is an error many people make as they do not believe in having a budget, let alone adhering to it. Without a budget, there is no way you can track or manage your money. 

You cannot determine how much money that go out and come in especially if you are on your own. That is why several people, especially salary earners find it hard to live within their income because they do not have a spending plan. 

Mind you, without a budget it will be quite difficult to set up a financial goal for a particular period of time such that fulfilling your retirement dreams may be impossible. 

Expensive Lifestyles 

This is mostly common with people that earn good salaries, especially the ones that lack proper financial planning as they do not think of their future. And as such, are mostly affected adversely because of their expensive lifestyles when they lose their jobs. 

Some low-income earners, who want to belong, are also in this category and can go to any length to procure whatever they desire, even if it is not essential, thereby making debts, their way of life. 

Procuring Items On Credit 

This is common with many salary earners regardless of their monthly pay. Some people are just used to buying things on credit without taking cognizance of the fact that they are likely to pay more. 

Also, lack of proper financial planning coupled with the inability to have a grip on your finances makes it difficult to live within your earnings. The type of friends you associate with also determines how prudent you will become financially. 

No Financial Set Goals 

There is no way you will experience financial independence when you fail to set financial goals for the future. 

Mind you, setting financial goals is a good thing but determination to achieve such set goals is better, enabling you to stand tall financially. If you are the type that finds it difficult to save, believing that ‘tomorrow will take care of itself ’, you need to change your mindset and start saving for the future now to avoid financial regrets later. 

It is good to enjoy life now but be certain to save for the future and diligently work towards your set goals for that is when life will be more enjoyable. 

Failure To Invest In Yourself 

If you find yourself doing an energy-sapping job that you hate, or not being able to find a job at all, what you need to do is to take responsibility and change your career. Although, it might appear creepy to go down a new path, start a side business and put in your best for it to succeed. 

Besides, you are the only one that can take charge of your career; nobody will do it for you. Taking charge of your career and negotiating your salary is a sure way to boost your income but failure to do this will cost you a lifetime regret. 

No Emergency Fund 

Some people do not believe in having an emergency fund and as such do not have plans to create one. Do you know that setting aside a certain amount of money in a separate account for emergencies will help you greatly if one arises? Emergencies are inevitable and are bound to occur in one’s life, hence the need to create one to avoid financial embarrassment. 

More so, the situation of the current economy is unfavourable and getting financial assistance may be difficult as there is no money out there. But, if you do not want to be caught off guard financially in emergencies, then try to create space for an emergency fund in your budget. 

No Alternative Source Of Income 

This is one big mistake associated with most salary earners as some of them depend only on their monthly take-home. 

Relying on a particular source of income, especially if the pay is meager and not regular, is not advisable, thus, the need to have an alternative source of income for survival and financial independence. 

What if your salary is epileptic and you suffer job loss? How will you survive? But with other sources of income, when financial challenges occur, coping will not be that thorny because you have something to fall back on until when you become financially stable. 

That is why it is crucial not to rely on one source of income but embrace residual or multiple sources of income.