Person finance planning (must read).

Kennysplash

Verified member
There are three types of financial status.
1. Vicious cycle of poverty. This involves
I . low income earnings
Ii. low savings or no savings
iii. low standards of living
Iv. limited opportunities for next of kin.

2. Financially unstable. This involves
i. Living beyond means
ii. Poor management of personal finances
iii. Low savings
iv. No assets and capital accumulation

3. Financially stable. This involves
i. Having a plan for obtaining financial resources
ii. Planning and management of personal finances
iii. Investing earned resources
iv. Having full control of financial future

Levels levels of financial status
i. Emergency situation. Expenses exceed income
ii. Bad situation expenses equal income
iii. Good situation. Expenses below salary income
iv. Financially independent. Expenses below asset income.

Use this to analyze where you fall and take the needed steps to improve.
 

Jonaville

Active member
If I should rate myself according to the levels of the financial status you listed here, then I can actually say that I'm in a bad situation because my income is exactly equal to my expenses. I know this shouldn't be the case but I can't help it for now. But I am currently working on obtaining a better life, so hopefully very soon I will be able to confidently say that I am financially independent, where my expenses will be well below my asset income. This is my dream, this is my aim, this is my goal. May God help me.
 
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