I got inspiration to write this blog by reading a short book about personal finance, but by the end of the book it was pretty much irrelevant to me. The book is written for USA citizens and at the end there is an ad about some fiance guru, and his contact number, email, CD, all kind of shit. One of more stupid American self help book!
Never the less I don’t have idea what to write, so I wrote this stupid text. Most of this so called advices are not something that my intelligent brain figure out, although there are some sense in al this, but so what?!
Title is mine!
Even though budgeting is a wonderful tool for managing your finances, many people think it’s not for them. The logic they use, however, is often flawed. Below is a list of 10 budget myths that stop people from saving as much as they could – and should. Do any of these budgeting myths apply to you?
I Don’t Need to Budget
The truth is, almost everyone, even those with large paychecks and plenty of money in the bank, can benefit from budgeting. Keeping track of your monthly income and expenses allows you to make sure your hard-earned money is being put to its highest and best purpose. For example, if you knew how much money you were spending on restaurant meals every month, you might decide that you’d rather be putting that money toward something else, like a nicer vacation
I’m Not Good at Math so I Can’t Manage My Money
Thanks to budgeting software, you don’t have to be good at math; you simply have to be able to follow instructions.. If you know how to use spreadsheet software, you can even make your own budget. It’s as simple as creating one column for your income, another column for your expenses and keeping a running tab on the difference between the two.
My Job is Secure
No one’s job is truly secure. If you work for a corporation, downsizing or losing your job is always a looming possibility. If you work for a small company, these concerns may not apply, but if the owner died suddenly, the company might die with the owner. You should always be prepared for a job loss by having at least three months’ worth of living expenses in the bank. It’s a lot easier to accumulate this money if you know how much money you’re bringing in and laying out each month.
It Won’t Happen to Me
We all think that unexpected high bills and tragedies won’t happen to us. With the number of things that can possibly go wrong in life, hoping for the best is the most logical emotional survival tactic. However, you might lose your job, be in a car accident, need to help a friend or family member who falls on hard times. It’s best to be prepared and hope that you’ll get to use the money for something fun one day instead
I Want To Live the Life
Budgeting is not synonymous with spending as little money as possible or making yourself feel guilty about every purchase. The crux of budgeting is to make sure you’re able to save a little each month, ideally at least 10% of your income or at the very least, to make sure that you aren’t spending more than you earn. Unless you’re on a very tight budget, you’ll still be able to buy staffs and go out to eat. Tracking your expenses doesn’t change the amount of money you have available to spend every month; it just tells you where that money is going.
I Don’t Want Anything Big so I Don’t Need to Save
This one is tricky. If you don’t have any major savings goals to buy a house, a new car or to save enough money to quit your day job and take a stab at starting your own business, it’s hard to drum up the motivation to stash away extra cash each month. However, your situation and your attitudes are likely to change over time. Perhaps you don’t want to save up for a house because you live in City and expect that renting will be the most affordable option for the rest of your life. But in five years, you might be sick of the city and decide to move to village . Suddenly, buying a home becomes more affordable and you might wish you had five years’ worth of savings in the bank for a down payment.
To manage your monthly expenses, prepare for life’s unpredictable events and be able to afford more expensive purchases without going into debt, budgeting is a great idea. Keeping track of how much you earn and spend doesn’t have to be drudgery, doesn’t require you to be good at math and doesn’t mean you can’t buy the things you want. It just means that you’ll know where your money goes, you’ll have greater control over your financial situation and you’ll probably be able to sleep more soundly at night.