Get smart with your money

Men too need financial discipline. Shutterstock photo

What you need to know:

MEN AND MONEY. The battle is especially apparent when it comes to men and how they spend their money. Mathias Wandera gives you tips on how to handle finances.

It is usually midmonth that the phone calls in the male circles go wild. A worried man will call to share his dilemma. “John, this month will not end!” Then he will go on, “It is 17th but I’m already nursing an empty wallet. I don’t know how I will survive until pay day.”

And often, after that brief speech, he asks if the brother on the other end of the line can spare Shs300,000. “I’ll wire it back to you before end of month.”
Unlucky for him though, usually, and surprisingly that is, the brothers you run to for a little financial redemption beyond midmonth are also broke! What you will get from them is talk, not money. “Bank wolves were coming for my car, I had to clear their loan. I’m down!” Lies! “Madam and the kids have been sick. Medical bills have crippled my account.” More lies.

Most men go broke and they have no idea how that happens. Julius Omoding, financial expert and CEO Finca Uganda says, “Your money is not disappearing because your relatives are after you with some sort of African vodoo. Usually, the problem stems from the failure among most men to make a proper budget for their money.”

But do men budget for their money?
The problem to most men is not failure to make proper budgets but the lack of a budget. Godfrey Nsereko, an electronics trader on Luwum Street says he never budgets for his money. He prefers to handle things as they come. So, he waits to spend each time the need for expenditure falls due.

“I do not look forward to a fixed amount to be deposited to my account every end of month. To us traders, money comes depending on the flow of business, and you never know whether business will go north or south. It is impossible to plan for money that you are never sure when it will come and in what amounts. That is why I never make any budget for my money. I spend it as it comes,” Nsereko explains.

Moses Maganda, an operations manager at FastLink clearing and forwarding also confesses to living with no money budgets. And just like Nsereko, Maganda too believes he has a valid reason not to stress with budgets. “Granted; I have some fixed expenditure like my fuel costs and my daughter’s school fees. But a lot of the items I spend on are not fixed for the month. I may spend on medical bills this month yet such expenditure will not feature next month, instead it may be car repair. So the whole idea of making a budget for the money becomes a little impractical on my side. That is why budgets are off the table,” Maganda says.

Although some men try to justify their choice not to make a budget, Omoding is quick to assert that no matter what you tell yourself, the decision not have your money budgeted for is nothing but a big mistake. The fast way to lose grip on your finances is to churn out money without any sort of budget. “Doing away with a budget means you are willing to spend without planning. And what are the chances such expenditure will uphold your priorities and the value for money?” He rhetorically asks.

Omoding urges every man to always have a budget drafted before making expenditure as this will guarantee the much needed control and stability over personal finances.
However, much as some men have insisted on making what they usually believe to be a winning budget for their money, they often find their financial life going off rail.

Alex Odur, a senior banking assistant at Crane bank says he always makes a budget for his money, though this has not disentangled him from financial woes. “The problem for many men is not the lack of a plan or poor budgeting skills. The problem is some of us have very limited finances. Bankers do not earn much.

I earn minimal. Since I have a wife and three children, it cannot sustain us comfortably, however much I budget.” Money is never enough, Omoding believes the issue always comes down to how you plan for resources. As he is quick to point out, much as some men have actually taken the commendable step of budgeting for their money, they still make budgeting mistakes .

The budgeting mistakes you could be making
“A number of men do not know how much they actually earn. Some have actually not taken time to look at their pay slips. Occasionally people budget basing on their gross pay, which is misleading,” Omoding says.

Worse still, some men plan for money whose chance of being received hangs in balance. Plan for a salary which you are assured of at the end of the month. It however defeats budgeting effectiveness if you include a sum a friend promised to pay to you as part of the amount spendable in your budget, you will have blown your budget a little out of proportion. Finally, making unrealistic budgets keeps you away from priorities.

Tips on financial discipline
Know the exact amount you earn. This will help you come up with a realistic budget.
While budgeting, stay aware of your personal circumstances. Do you travel often? Then there is no need to rent an expensive three- bedroom house if you only sleep in it five days a month. You could opt for a cheap one- bedroom apartment.
Make sure all expenses are included in your budget.
Set your priorities right. Ensure you allocate the money to your needs first before you channel anything to the wants. No need to set aside funds for a seventh pair of shoes if the water bill has risen.
Your budget should not be too tight