Responsibility is a germane quality in a human’s personality.
Responsibility is simply “doing the right thing.” Doing the right thing means living a life where you bear the consequences of every action you take while keeping others in mind. Responsibility is the moral quality of individuals being ethical, accountable for their actions, and conscious of the impact of their decisions on society.
People are not born with a sense of responsibility. Being responsible does not happen magically by the snap of the fingers. It is a quality that people should cultivate until it becomes part of their personalities.
It encompasses personal and professional development. A successful person must be responsible for his future. He must be a man of his words and a go-getter. When you are responsible, you become a better person and gain the respect of others.
5 QUESTIONS TO DETERMINE HOW RESPONSIBLE YOU ARE
Answer the following questions with a “Yes” or a “No”.
Do you always fulfil your promises to others?
Do others consider you as a reliable person?
Do you have long-term goals for your life?
Do you take practical steps to develop yourself?
Do you help others to solve their problems?
If your correct answers to the questions above were “Yes”, you are a responsible person. If you answered “No” to any of these questions, you have areas to develop to become more responsible.
HOW TO BE A RESPONSIBLE PERSON
Constantly work towards your life goals.
Be reliable. Start from simple things like fulfilling little promises to others. You may write your tasks in order not to forget them.
Control yourself in different situations. The ways you respond to situations prove your level of maturity and responsibility.
Everyone has different interpretations of responsibility and different kinds of responsibilities. However, resolve to perform your responsibilities in life, and be responsible, as irresponsible people are always liabilities in the long run.
Folakemi Oyeyemi is an Associate Solutions Architect at Lead Resources, a strategic human capital development social enterprise that helps organizations become the best they can be using world-class tools and practices. She is a Mathematician and is also passionate about entrepreneurship.
“If you don’t know where you are going, you will probably end up somewhere else.”
Lawrence J. Peter
Many people feel lost. They work hard but never seem to do anything worthwhile. One reason people feel this way is that they haven’t spent much time thinking about what they want from life and haven’t set themselves formal goals.
The process of goal-setting helps you choose where you want to go in life by identifying what you want to achieve and where you have to concentrate your efforts.
There are three basic steps in the personal goal-setting process:
Understand: Understand yourself by knowing what motivates you and what you want to achieve.
Collect & Create: Compile an extensive list of what you want to achieve.
Prioritize: Is it worth your time, is it relevant and is it sustainable?
One easy way to ensure you achieve your goals is to set SMART ones.
REVIEWING YOUR LIFE GOALS
Goal-setting is not enough. Reviewing your goals regularly is quite important to determine whether they are still relevant, and whether you are on track. If not, you need to adjust them in line with your current situation.
By reviewing your goals, you can measure your achievements. If you fail to achieve one step, you can reassess your situation and try new approaches.
Keeping your goals defined and updated as your situation changes is one of the ways to stay motivated throughout your journey in life.
When you’ve achieved a goal, take your time to enjoy the satisfaction of having done so. If the goal was a significant one, reward yourself appropriately. This helps build your confidence.
Also, absorb the implications of goal achievement, and observe the progress that you’ve made towards other goals.
With the experience of achieving a goal, review the rest of your goals if:
You learned something that can lead you to change them.
You noticed a deficit in your skills despite achieving your goal. Take deliberate steps to fix this.
When setting your life goals, it is good to base them on your strengths, but ensure they are relevant and ultimately achievable. To achieve more, I repeat, set SMART goals.
For more insights and practical solutions on personal talent management and goal-setting, contact Lead Resources here.
Adetoyese Oyedunmade is an Associate Solutions Architect at Lead Resources. She is an Agriculturist by profession and is enthusiastic about entrepreneurship.
Budgeting is an aspect of Personal Finance that literally makes people shiver in fear😁 This is because it forces people to face the reality of their finances, and only the courageous can do that. Hence, people usually neglect it altogether. For this reason, I will not go into the “boring” intricacies and technicalities of budgeting – the part that scares people. I will keep this as simple and interesting as possible. My aim is to help you understand your need for a simple budget for your personal finance.
WHAT IS A BUDGET?
A budget is an itemized summary of intended expenditure coupled with expected revenue for a length of time. Simply put, it is an estimate of income and expenditure for a period. Cambridge dictionary defines it as “A plan to show how much money a person or organization will earn and how much they will need or be able to spend.” You may define it as “A list of all planned income and expenses, a plan for saving and spending for the near future.” From the definitions above, you can see that a budget is not something you create off-hand. It ought to be a written plan (on a piece of paper or PC).
WHO NEEDS A BUDGET?
There are different types of budgets for different people and situations. A budget can be created for an individual, a household, a business, an NGO, a State, a Nation, etc. Wherever a person or a group of persons make use of money on a regular basis, there is a need for a budget.
TYPES OF BUDGET
A simple Google search will give you many kinds of budget, making you more confused. However, I have classified budgets into 3 types, namely:
PERSONAL BUDGET – For individuals, families and households.
BUSINESS BUDGET – For NGOs, SMEs and companies.
ADMINISTRATIVE BUDGET – For schools, churches, LGAs, states, nations and other administrative systems.
Also, budgets could be classified as SURPLUS, DEFICIT or BALANCED.
It is a SURPLUS Budget when your income exceeds your expenditure for a set period. This should be everyone’s financial goal. This implies that there is more money for savings, investment and other things you want.
It is a DEFICIT Budget when your expenditure exceeds your income. Unfortunately, this is the situation many people find themselves in. They always run out of money to fund their expenses. This calls for a red alert as radical measures must be taken to remedy this situation. You need not worry though. You will know how to solve this problem by the time you are done reading this article.
Lastly, a Budget is BALANCED when your income equals your expenses.
WHY YOU NEED A BUDGET FOR 2021
I could list a thousand and one reasons why you need a budget. You might even know more. You may have learnt them in your Accounting or Economics class in Secondary School and may have attempted questions on them in your final external examinations (WAEC, NECO or JAMB). But what stops you from implementing them? Lol.
Perhaps, the most important reason you need a budget is that “Human wants are unlimited while the resources to meet them are scarce.” Sounds familiar, right? Yes, this is what you were taught in Economics. In addition, there are a lot of things, people and circumstances competing for your money. They want to take it away from you however they can – legally or illegally (Ask the victims of failed Ponzi schemes😂).
Unless you create a budget, which is basically a PLAN on how you want to spend your money, it is easy for these “human wants” to take your money away and leave you in poverty. If you experience the frustrations of not having enough for the things you need or begging for the necessities of life, you will realize you need a budget. I hope you don’t get to this point. Instead, realize that a budget is critical to financial control.
In summary, having a budget is important because it ensures that you have enough for the things you need (and things that are important to you) however and whenever you need them.
KEY ELEMENTS OF A BUDGET
When drafting a budget, there are certain things you must take into consideration, namely:
INCOME: This is the amount of money that comes in weekly or monthly. This includes all your sources of money – both passive and active income.
FIXED EXPENSES – These are the expenses that don’t change easily as they are paid regularly (monthly). Examples are rent, insurance premiums, taxes, debt payments, interest payment on a loan, child support, etc.
PERIODIC EXPENSES – These are expenses that are less frequent. They come in periodically or unexpectedly. Examples are car repairs, home maintenance, gifts, appliance repair, loans, etc.
VARIABLE EXPENSES – These include every other thing that you need for daily living. They are called “Variable” because they vary from time to time. They include food, utilities, phone bills, TV subscription, gas, fuel for car and generator, clothing, education, medical bills, transportation, entertainment, name them. They are usually the most difficult category of expenses to track because they fluctuate a lot. When trying to fix your deficit budget, variable expenses are usually the first place to start trimming.
HOW TO DRAFT A SIMPLE BUDGET MASTERPLAN
In other to draft a budget successfully, you will need some basic tools, namely:
Notebook or PC
STEPS TO CREATE A BUDGET THAT WORKS FOR YOU
DETERMINE YOUR PRIORITIES: To be frank, even if you were given all the money in the world, you would still wish for a million things. So, since your income is limited, you should arrange your needs and wants in order of importance.
HAVE A GOAL: Once you know your priorities, set financial goals and deadlines for each goal. When you define your goals (What are you saving for?), your amounts (How much do you need to save?), your deadlines (When do you need that money?), you can create a budget – a roadmap – to achieve your goals.
CREATE A LIST: Write down and categorize all your expected income and expenses in vertical order of importance. Don’t forget to divide them into Fixed, Variable and Periodic Expenses.
HAVE A PLAN: After creating the list, you need to have or create a plan, that is, determine how you intend to meet your needs and what percentage of your income you will allocate to each need.
CALCULATE: This is the stage where you have to apply basic arithmetic. Calculate the real figures and determine how much you need to allocate for each expense. Wherever you get stuck, use a calculator. In the end, you should have a lot of figures.
EXECUTE: Finally, get into action. You aim should be to spend exactly or below what you have budgeted.
HOW TO STICK TO YOUR BUDGET MASTERPLAN
The thought of sticking to your 2021 budget from January to December should not give you goosebumps. Simply follow these guidelines:
Place your budget somewhere you can see every day.
When you feel like giving up, remind yourself why you created the budget in the first place.
Most importantly, have an accountability partner – someone to hold you accountable for the way you spend your money. If you’re married, your spouse can be your accountability partner. If you aren’t, your best friend, pastor, parents or anyone you can trust can be your accountability partner. Better still, you may join my SBM Program to have an experienced Financial Intelligence Coach as your accountability partner.
In summary, taking charge of your finances in 2021 begins with having a Savings and Budget Masterplan. Now that you have learned how to create these plans, it is time to put your knowledge to work so that 2021 will be a remarkable year for you.
N/B: This article is an excerpt from a webinar which was first published on my Facebook community – Financial Intelligence Forum (FiFo). Join the community to access my past and future publications.
For an in-depth course on financial literacy and how to manage your personal finance, I recommend that you enroll for LEAD Resources’ Digital Economy Emerging Managers’ (DEEM) programme as more practical measures of attaining financial freedom in the digital economy have been distilled therein.
Obot Essiet Jr. is an Associate Solutions Architect at LEAD Resources, a Financial Intelligence (FINTEL) Coach and a Co-founder/COO of Naiyuan Mart, a Chinese-Nigerian procurement and manufacturing company. He runs a blog and a community on Financial Intelligence. He is passionate about helping people journey towards financial freedom through practical financial literacy solutions. Obot Essiet Jr. loves writing, gardening, watching adventurous movies, cycling and playing chess.