Reflective Journal Essay Example
My work as a porter has been my source of income for quite a long time. The basic salary on average per day is 120 dollars. However, I also get tips from the customers serve on a daily basis. Mostly, the average amount of money earned per day is usually approximated to be 180 dollars. It is in this amount that I have to allot to my expenses and priorities. Some of the priorities are daily, and others take place once in two days.
From the 180 dollars I earn, the person in charge of daily laundry asks for 10 dollars after the completion of the daily task. Further, I average the power bills to be approximately 2 dollars per day. I also spend approximately 45 dollars for transport commuting to and from work. The daily food requirements accumulate to approximately 45 dollars. I also collect a movie from the neighborhood movie shop at a fee of 5 dollars per movie.
However, I always invest a range of 10 to 20 dollars per day within the security market. That involves securing of some short-term shares. I also seclude an amount of 30 dollars per day to ensure that I save up for the weekend deliveries that make in the neighborhood. I use approximately 110 dollars for the part-time business after which I earn approximately 50 dollars of profits. The rest of the amount of money is saved in the bank. That amount saved is approximately 30 dollars. The money is saved in the bank. However, I consider it to be very imperative to have some money with me in the form of cash for cash-affiliated emergencies.
Cumulatively, the total direct expenses add up to 107 dollars per day. Arguably, that is way higher than the total income per day. The money used in the securities is approximately 20 dollars. Therefore, and the leakages tend to be more than the injections. From a professional point of analysis, I consume more than I can afford to save in the first instance. For instance, the total amount of money invested and consumed after everyone weak is 157 dollars. The savings account gets approximately 23 dollars at the minimum. However, the deliveries after the end of the week earn me 50 dollars profits. That means that the total amount of savings after the end of the week is an accumulation of the 50 dollars profits. Further, the savings saved for the whole week and the accumulative amount of 27 dollars per day, for seven days.
Arguably, the costs are assumed to be 107 dollars. There is an assured form of investment whose rate of depreciation in value cannot be determined considering the wavering condition of the securities market. However, the profits accrued after the two weeks of analysis tend to be more than the money spent. That implies that my trends of saving and using a portion of the money earned to do business could lead to better financial practices (Flamholtz 32). Arguably, I tend spend more than earn. However, the most important trend I have taken is that of using a portion of savings to invest. However, from the common principles of accounting, returns on investments are not certain. Therefore, I believe that I need to reduce the expenses I incur on leisure activities to create a reasonable balance between the savings and expenditure. Otherwise, there is a likelihood of finding myself financial unstable when tips at the workplace reduce or investment as a delivery agent fail to satisfy expectations.
Solution to an individual who spends more than they earn
First, financial management is very important. The behavior may be because the individual does not carry out some finance management practices. Further, it is important to ensure that the unnecessary expenditure is reduced. Instead, investments in lucrative activities could reduce the proportion of the money spent with regards to the money spent. Therefore, the best approach is by ensuring an increase in the level of finance injection strategies (Flamholtz 65).
Flamholtz, Eric G. Human resource accounting: Advances in concepts, methods and applications. Springer Science & Business Media, 2012.
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