How many times have you bought things you didn’t need or couldn’t afford?We often make these wrong financial decisions because we do not have a budget.

Budget

Nothing scary or complicated about investing.None of your money should sit idle in a bank account except your emergency fund.Your money should actively work toward reaching a goal on its own to your benefit.

Investing

Cooking your own meals is a great way to save money. Financial security means you must embrace the Italian grandmother's mindset — cooking for yourself and your family members is imperative, and eating out or ordering food is a treat.The next time you’re tempted to go to the nearest restaurant, remind yourself there is food at home, and you can save for the future.

Lifestyle

<ul><li>Find a non-stressful time to have a money talk.</li><li>Begin the conversation by appreciating each other.</li><li>Both you and your partner should then, in turn, share how money was regarded and handled in each family.</li><li>Both of you should, in turn, share money hopes and dreams, as well as fears and concerns.</li><li>Both of you can mention the facts ― the subject of the (potential) dispute.</li><li>Both of you should agree not to blame the other concerning the money issues that have now been resolved.</li></ul>

Discuss with Your Life Partners

<ul><li>Save up an emergency fund equal to at least three months of your living expenses.</li><li>Create a debt repayment schedule that pays down your debt at a minimum cost of interest and maximum benefit in profit to you. Compare the interest on your debt with the return on investment you are getting per dollar for the month.</li><li>Open up a retirement account.</li><li>Consider investing in the likes of mutual and index funds because they are low-risk.</li><li>Consider investing in the individual stocks of companies you feel a strong affinity for (only if you feel confident of your investing savviness).</li></ul>

Start Your Journey

Rules that will help you make a success of budgeting:<ul><li>Don't create any debt you cannot repay within a month.</li><li>Don't make buying expensive things a habit.</li><li>Check your account balance at least twice every week.</li><li>Don't assume savings will happen automatically.</li></ul>

Success Budgeting

Your cash flow is healthy if:<ul><li>50% of your income pays your fixed costs like rent, telephone, and utility bills.</li><li>30% of your income pays for variable and lifestyle costs like groceries and travel.</li><li>20% of your income pays for short and long-term investments.</li></ul>

Healthy Cashflow

With your partner, you need to have goals and dreams involving investments, property ownership, and retirement, not just falling in love and hoping all turns out well.You should willingly postpone your fairy-tale ending to build some stability for yourself.

Money in Your Relationship

Money is nice, but there has to be a point to it. Otherwise, you’ll never have enough.

You also need a pyramid of bank accounts in place.<ol><li>Top of Pyramid: Checking account. This is where you keep your day-to-day expenses.</li><li>2nd Top of Pyramid: Savings account. It houses your emergency fund.</li><li>Middle of Pyramid: Semi-liquid savings account, which would help save up to buy a house in a few years.</li><li>Bottom of Pyramid: Account for longer-term investment.</li></ol>

Pyramid of Bank Accounts

Having a written financial plan gives us a measurable goal to work toward. We can reduce doubt or uncertainty about our decisions and adjust to help overcome obstacles that could derail us.

*A Refinery29 Best Book of 2018* *One of Real Simple's Most Inspiring Books for Graduates* *Indie Personal Finance Bestseller* How to get good with money, even if you have no idea where to start. The Financial Diet is the personal finance book for people who don’t care about personal finance. Whether you’re in need of an overspending detox, buried under student debt, or just trying to figure out how to live on an entry-level salary, The Financial Diet gives you tools to make a budget, understand investments, and deal with your credit. Chelsea Fagan has tapped a range of experts to help you make the best choices for you, but she also knows that being smarter with money isn’t just about what you put in the bank. It’s about everything—from the clothes you put in your closet, to your financial relationship habits, to the food you put in your kitchen (instead of ordering in again). So The Financial Diet gives you the tools to negotiate a raise and the perfect cocktail recipe to celebrate your new salary. The Financial Diet will teach you: • how to get good with money in a year. • the ingredients everyone needs to have a budget-friendly kitchen. • how to talk about awkward money stuff with your friends. • the best way to make (and stick to!) a budget. • how to take care of your house like a grown-up. • what the hell it means to invest (and how you can do it).

CHELSEA FAGAN

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Challenging beliefs

4. Practice gratitude and generosity

Time is not money