Savings 106- Personal Financial Management


Welcome to another week of financial learning. This week I want to touch on the topic personal financial management.

Managing your personal finances is simply having a clear and objective knowledge about one’s finances. Managing your finances goes beyond just saving a portion of your income.

A personal budget simply means have a laid down apportionment of how you intend using any income you receive.

It involves having a budget for your income as well as taking into account financial risks and unknown future invests.

This is a topic that is often neglected in out part of the world. However, this forms the basis of creating wealth.

A personal budget simply means have a laid down apportionment of how you intend using any income you receive.

We will learn a simple personal budget in this section. Before that, I want us to appreciate the fact that managing your finances goes beyond just money. It includes your time and any other form of resources.

There is an adage that says “Time is Money”. It is so because time lost may never be regained just like money. If you lose your money through wrong and uninformed investment, it ends there!

It is therefore of great importance that we consciously put our ears and mind to the personal budget below.

I have done a lot of research on the components of a personal budget in terms of percentages for various expenses line. I however believe the list below can help push us to the next level financially.


Before we draw a simple personal budget, I want us to appreciate the components below as a guide;

From the table above, our rent should not be more than 35% of our monthly income. Income here includes both your salary and aside business. If you go over this margin, chances are that your savings fraction will either reduce or diminish.

As we are all aware, Tithe is at a non-negotiable rate of 10%.

With the above said, a simple budget will look like this;

Above table is a typical personal budget that we all need to understand.

With the income column, we are expected to fill in our current income streams. Both current employment and any other source if any. We then fill out the specific expenses line keeping in mind the percentages as stated above.

The purpose of the personal budget is to make you discipline and stay within your means. The bottomline for the budget should be NIL or zero. Your income should be matching the expenses.

Expenses here includes your savings and tithe.

Trust me, you are likely to get a deficit of negative deficit if you slot your current expenses as against your income in this table.


Previous articleReducing your Monthly Personal Expenses
Patrick Baah is a chartered banker with over 5 years experience in main stream banking having worked in various capacities. He is currently at the Branch Manager Position of his institution. He has been a qualified member of the Chartered Institute of Bankers, Ghana with a good membership standing since the year 2013. He also holds EMBA and BA from Kwame Nkrumah University of Science, Technology, and the University of Ghana respectively. Patrick is the originator of the daily epistle dubbed “Savings Tip of the Day” which has been running for over a year on WhatsApp and Facebook. Patrick has also been teaching on the Topics Savings, Investment and Financial Independence for over 2 years and a research fellow for ILAPI Ghana. He runs a financial channel on Youtube by name “Patrick TV Gh” and has appeared a couple of times on the business segment of TV3 News 360. Patrick is into youth facilitation and counselling. I can be contacted via and or 0243984492.


Please enter your comment!
Please enter your name here