Do You Even Budget ?

in money •  2 months ago

Yesterday, whilst having no internet, I watched a clip I downloaded from youtube titled " How to manage your money like the rich" by Tom Ferry. After watching the whole video, I realized it was not a rocket science to understand their financial planing in general. As easy as it was to comprehend, I reflected to my own financial situation.

" What went wrong and how can I fix it?"


Image Courtesypexels


In the video, it was mentioned that majority of people will spend their check on buying stuff. They don't think about tax, debt or even business savings. So, that is the problem, my spending is just like majority of people.

My checks (now it's pocket money) will mostly go to personal spending. I don't even think about loan or business saving. Let alone those, I don't even have a proper budget and will definitely go lose on my meal.

Meanwhile the rich, or so as the video said, they will properly budget their checks and divide them into several areas such as : retirement money, property, savings, personal account and tax. By now, I noticed there are real examples around me. For instance my mother, who has a yearly budget and that includes a property savings too.

About two months ago when my step brother visited the family, we had a talk about money. He told about his amazement with people who survive just under 100$/month. " How can they do that?" he asked me.

" Perhaps they don't really need much?" I hesitantly said.

" Yeah, they might not need extra phones, extra laptop, extra luxurious items" he added.

"I want to be like them " he further stated.

It really made me ponder about my own spending habit. I can have 500$/month and still think it is not enough, or I can have 40$/month and think it's enough. And, I can spend them just as easily no matter what the number is.

About four months ago, I wanted to know where I spend my money and how much I spend in a month. It turns out my biggest spending will be on food, snacks and some stuff I don't remember. I was baffled by the amount of money I spent and how I didn't have any savings left.

A semester before I am back to school, I was writing down all the things I need in order to survive. Turns out, I only need medicine and food. Even internet has becoming a luxurious needs. However, even I have planned this, there was still temptation to overspend the pocket money I have.

Since I am currently unemployed, I get only 50$/month(*) from my parents(s) which is definitely lesser than most students I know. My parents assume that I only need food and medicine to survive.

So what about clothing? what about gadgets? what about emergency things? I can simply ask them (but since I am trying to be self-sufficient, it's never been the case. I would rather do a job and earn it myself). Also, my rent is paid yearly (though for some messed up reason, I have only paid half).

Anyway, If I am more careful with my spending, I could have saved around 10$/month. That money could go to my future business savings.

So starting from yesterday, I am trying to spend as little as 0.50$/food which is not a junk food by the way. It's vegetarian or vegan meal. I can also go a little extra by buying fishes that wouldn't cost me fortune. Hence, 20$ a month would be sufficient.My medicine will usually cost me no less than 6$/month since I have a basic health care plan, everything has been covered.

On the other hand, back when I was having more than 500$/month, it sure did nice but I didn't even think about having future savings at all. I thought money was flowing like a tap water. I also didn't even consider I would face burnouts and low motivation. So, I would really love to go back to my past and tell my self to get my shit together.

There's actually much more unsaid and unwritten but I'll just organize my thoughts better some other time. Feel free to drop your experience in the comment section.

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Budgeting is the first and most important step to financial freedom. What follows next is discipline to actually live by the budget.

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exactly @mikedeace, discipline is the challenging part.

Haha I guess I've seen that video couple of weeks ago as well..title sounds familiar...20 dollars for food for a month? How the heck is that possible :O what type of medicine do you need to "survive"? It's pretty expensive..

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20 dollars for food for a month? How the heck is that possible?

I just found a paradise in this city. There are places who sells cooked vegetables and various vegetarian meal only for 0.15/ 2 scoops....

Then, rice 1kg cost 0.99$ and usually an average person spends 1kg/week... so living 20$/food is doable unless you want to eat in restaurants then it's different case.

I am definitely trying to live more humble because I want to save up for my future business plan and investments.

I need my herbs (gotu kola) comes in pill and piracetam otherwise, I am not limitless :D

Nah, eventhough it has that "kind of effect" I need it just to help my self function like other people who eat, sleep, perhaps work and repeat.

I did so - for a while - some years ago, to get my shit together. I was very low on money back then. Around the same time, I tried to change my believe towards money, recreate my money story. I worked hard on loving it in the hope of attracting more. It took some time but things seem to be working out now.

These days. I'm not budgeting any more but - besides believing that there's abundance and focusing on getting ( more ) money towards me I also do my best to no be afraid of spending. In fact, I spent more the last half year, than in remember to have ever spent without feeling I'm running out.

I am also making sure to diversify, so my money trees can grow in different ways and places.

In other words, I feel you're on the right path. Everything works in cycles. It's just a matter of getting rid of your fears and working on your beliefs.

xx

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I am trying to have a better relationship with money instead resenting the idea of it and ignoring that I have ends to meet. I am currently fixing some of the things from the past and only then, I can grow more money trees.

xx

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I am working hard on growing money trees myself as I'm plucking them way faster than I expected, haha! I can do it though. Money grows on trees, no matter what people tell you

xx

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Good for you mate!
I am wondering where I can start planting my seeds and watch my money tree