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Key to financial discipline

Key to financial discipline

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Discipline which is following of a code or systematic plan seems to be the main ingredient to not only financial success, but all success.

Financial discipline is being able to control your spending and to be able to put money away instead of spending it.


How to achieve financial discipline?

  1. Spend less than you earn

Follow the 30/70 principle.

Tithes 10%, savings 10%, investment 10%, and live on 70%.

  1. Have a budget for your money

If you don’t have budget for the remaining 70%, it will never be enough.

The budget should cover the following:



Car maintenance

School fees




  1. Shun shady schemes

The quickest way to destroy your fortune and reputation is to engage in unwise or unethical deals and practices.

  1. Invest wisely

A small and safe return is more desirable than risky and high return. Invest only in business you understand and familiar with.

  1. Lend wisely

If you lend, lend in such a way that it may earn you more, and lend with caution in a variety of places

  1. Diversify

Diversification helps you to spread your risk and also increase your income potentials.

  1. Use professional advice

It is part of financial discipline to make use of lawyer, Accountants, Consultants etc.

  1. Use the power of leverage

Leverage is the power to control a lot with just a little

OPM:    Other people’s Money

OPE:  Other people’s Experience

OPI:  Other people’s Ideas

OPT:      Other people’s Time

OPW:    Other people’s Work

Those who build successful businesses are masters at using all five kinds of leverage

  1. Practice good corporate governance
  • Keep record of all your expenses.
  • Separate your personal finance from the business finance.
  • Ensure that all sales are banked daily.
  • Pay yourself a salary.
  • Pay your taxes.

Have an auditor for your company

Financial discipline is a skill that gets better with practice

It can be learned just like anything else.

Thus a key part of financial success is learning the skills of discipline and breaking the habit of spending unwisely.

When we all make up our mind, we can achieve financial discipline.


Tomi Omojuwa

Managing Consultant

Pathlead Consulting

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