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It's Time to Live on a Budget, Even if You're Financially Secure

Preparing financially for the future

Preparing financially for the future

With the perspective of an economic crisis in 2020, some of us already have to rethink our spending habits to make ends meet. Others may feel more financially secure. But when recessions come, they tend to come for everyone.

We have to start reevaluating our budgets, and possibly start saving as much as we can.

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It's Time to Live on a Budget, Even if You're Financially Secure

It's Time to Live on a Budget, Even if You're Financially Secure

https://twocents.lifehacker.com/its-time-to-live-on-a-budget-even-if-youre-financially-1843180219

twocents.lifehacker.com

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Key Ideas

Preparing financially for the future

With the perspective of an economic crisis in 2020, some of us already have to rethink our spending habits to make ends meet. Others may feel more financially secure. But when recessions come, they tend to come for everyone.

We have to start reevaluating our budgets, and possibly start saving as much as we can.

How to treat your income

Whatever income you are earning right now should be treated like it’s temporary.

Treat your current income as if it might need to stretch for as long as possible. It doesn't mean you need to cut back on everything, but you might need to consider cutting some of your expenses so that you can put more money into savings.

Saving versus spending

Saving money now is worth more than spending money later. This advice applies to any budget item that you could spend less on now.

Even if it is a really great deal, remind yourself that cash in hand now is worth more than an unnecessary purchase.

The next thirty days of saving

If you're unsure what you should be doing with your money right now, cut expenses and save every bit of money for the next 30 days. Then, reevaluate.

  • Did you trim as much as you could've?
  • Did you purchase anything you regret?
  • Did you fail to purchase something you should have?
  • How did your budget affect your overall quality of life?

Continue to budget, reflect, and repeat while saving as much as possible.

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SIMILAR ARTICLES & IDEAS:

The Golden Rules of Personal Finance
  • Spend less money than you earn
  • Always plan for the future: you should always look forward beyond the current month
  • Make your mon...
What a Budget Does

As a personal financial planning tool, a written, monthly budget allows you to plan for how you'll spend and/or save your money each month and also keep track of your spending patterns.

Make a Budget in 6 Simple Steps
  1. Gather every financial statement you can (bank statements, investment accounts, recent utility bills).
  2. Record all of your sources of income.
  3. Create a list of monthly expenses.
  4. Break expenses into 2 categories: fixed and variable.
  5. Total your monthly income and monthly expenses.
  6. Make adjustments to expenses: If you have accurately identified and listed all of your expenses, the ultimate goal would be to have your income and expense columns to be equal.
Financial Independence
Financial Independence

Financial independence implies not having to worry about money anymore, but rather focus on what you want to do, in your free time and your passions.

However, being financi...

Become financial independent

In order to attain financial independence, consider some of the below steps:

  • invest your money into different projects, stocks. activities: diversification is sometimes the safest key to success
  • do your research thoroughly before investing your money anywhere, to avoid unpleasant surprises
  • increase your income by finding side hustle or getting engaged in new projects
  • manage your income by cutting down unnecessary expenses
  • invest in real estate: rent or resell properties.
Attain financial independence earlier than later

In order to feel less stressed about your expenses, start doing the research on how to achieve financial independence now.

It will save you a lot of frustration that might emerge due to work while also making you feel more satisfied with your own life.