A presentation of personal financial discipline. Do you have it?
Ever find yourself justifying an expensive pair of shoes or a pricey pair of jeans by promising yourself you’ll “wear it forever”? Often, we’re just kidding ourselves – it just makes sense to go for the lower-priced alternative, especially if you’re in the market to save. But believe it or not, some merchandise (and some memberships) can be be well worth the splurge. Here are four examples, including some ways to save on the splurge:
There are two sides to the debt elimination coin—reducing expenses and increasing income. I think both sides work hand in hand. I also think it’s wise to start with reducing expenses. Why? Because it forces you to re-think your real needs. Increasing income without stabilizing spending will only promote bad habits further. And reducing spending is something you can do right now.
Once you see that, yes indeed, eating at home most nights won’t kill you, it’s time to start working on the income side of the balance sheet.
Anything? Yes, you can save up for anything. Follow these steps.
Prioritize. Prioritize. Ever get the feeling that, even though you made it through another dizzying, chaotic day at the office, you can’t remember accomplishing anything? That’s called a lack of prioritization. The same happens with money. If you don’t have a plan (i.e. a priority) for it, somehow it manages to get spent on whatever happens to be a priority at the moment.
How to prioritize? Setup a savings account and automatically transfer money to it each month. Trust me. Automation = happiness.
I write a lot about setting spending and savings goals. A big reason why is because most of us go through life on cruise control. Sure we can come up with all varieties of dreams but do we really plan to reach them? Or, even better, how do we know if we’re achieving them? We don’t. Not unless we make spending and saving a priority.
Next up are 4 budgeting tactics that will help you save more and spend more wisely.
Ok. So you’re starting your budget. Or you’re looking to simplify your current budget. What now? What overarching ideals should you be following? Here are 7 different things I think you should focus on with your budget. Some are more strategic. Some more tactical.
This is a personal finance, and related, blog. So, naturally, it includes advice based on my own circumstances and experiences. I’m not real comfortable giving “absolute” advice. Advice that everyone should heed all the time in all situations. Thankfully, the New York Times online sums up how I feel.
Yes and no. I think in some circumstances budgeting probably isn’t worth it. Are you independently wealthy and don’t have any major hobbies, like maybe a drug addiction? Then I think foregoing a budget is fine. But, even then, I’m guessing wealthy individuals (truly wealthy people) probably do a lot more managing like a business owner would do.
Other than this one instance, here are a few reasons why I think budgeting is worth your time.