It’s true that there are some basic truths to taking control of our money lives – spend less than you earn; save some for future expenses/lifestyle; create a living budget that adapts to your changing lifestyle; live the life you want.
Having said that, each person is the only true evaluator of what should go into their budget categories. One woman’s necessity can be another woman’s idea of frivolous spending. Be honest in your evaluation – for example, I know for a fact that I have a brown thumb and any plant that makes the mistake of being in my home is guaranteed to die, so I’ll always choose to buy rather than attempt to start my own herb garden. Believe me, I’ve tried but it just doesn’t work for me. Same way someone might think it’s essential to buy Starbucks everyday so will make budget cuts in other areas of their lives to pay for this extravagance. Therefore we should be careful about judging other people’s spending even if they are not struggling financially.
So, if we already know how to save money and spend wisely, why aren’t we doing it? I think the reason lies in the fact that many of us rarely have discussions about money in our families. Money, like sex, is a taboo subject. Talking about it makes us seem avaricious. If we talked about it more, I believe the mystery surrounding investments and business ideas will be demystified. Because if you think about it, we go on a saving spree then what happens? How do we build wealth from there? People don’t become wealthy from savings. The interest rates won’t let that happen. People do become wealthy however from investments. Different kinds of investments like shares, owning businesses, investing in part of a business. These are the discussions we should be having. And the brilliant thing about investing? You don’t have to give up your day job if you don’t want to.
Can we decide today to learn about investing? Go to your local bank or financial planner and ask for any leaflets they have on investments. Read through it and come back here with any suggestions, questions or ideas you may have.
We each have choices to make based on what is right for ourselves and our families.
I think deep down everyone needs to have the same philosophy: don’t spend more than you make; plan for the future; have a budget that you rework often and enjoy life!