What Happens If You Do not Have a Personal Budget?

Having a planned personal budget and following it daily will surely help you meet your financial needs. Personal budget is a tool that helps you have control over your money. It gives an idea of ​​how much you can afford for your various needs. It will enable you to determine whether a certain purchase will fit within your monetary constraints or not.

Whereas, not having a personal budget disturbs your personal financial situation. Your money goes haywire, and you will be left with no money in times of emergencies. The below article helps you understand how not having a personal budget affects your personal finances. Here are some possibilities that may occur if you have no proper personal budget in place.

You spend more than you earn
Budgeting helps you plan and track your expenses. Without having a proper budget, you tend to spend more than what you earn. There are people, who irrespective of their income levels, spend every penny they earn. Spending culture is getting worse day-by-day with the changes in lifestyles and unabated consumerism. This kind of behaviour can lead you to troubles, as it leaves you with nothing at the end of the month.

You start borrowing money
As you get into the habit of living pay cheque to pay cheque, you will be left with no money to save. Hence, you start borrowing money either to maintain your expensive lifestyle or to attend your unexpected needs. It is not only the lack of financial discipline that makes you get into debt-trap but also some sudden emergencies for which you may have not prepared. Also, there are some people who are struggling to pay off their current debts and still borrow debt to maintain an expensive lifestyle.

Most of your income goes into repaying debt
Debt, if not controlled, spreads like a virus. You will take more debts to clear current debts. This way, most of your income is used to repay your debts and you will struggle to manage your finances. Using credit cards is not a bad idea. But doing so without a budget and plan on repaying the debt will lead you again into financial hardships. Further, debt issues can also impact your mental health and family relationships.

The end result – you have nothing left
Impulsive spending behaviour, uncontrolled desires and no proper personal budget are the main reasons for getting you into financial troubles. These habits leave you with no money at the end of your life. If you live pay cheque to pay cheque, you can not save money for short-term or long-term goals.

Hence, have a proper monthly personal budget. Prioritize your spendings. Allot money for all necessary expenses and set aside some money as savings. Cut costs on unnecessary expenses like eating out, drinking and smoking, night parties, vacations / tours, etc.

Personal budget helps you stay disciplined and organized about your finances. It helps you improve your overall living condition, by allowing you to understand and change your spending behaviour. Also, it helps you to plan and solve your monetary issues.

What To Expect From a Financial Course

Thanks to the influx of technology and the Internet what once was only available to a privileged few is now available to a wide array of people from all walks of life. Thanks to online financial courses, students who once would have been unable to attend prestigious schools of finance or tertiary education colleges are now able to pursue the degrees in finance they desire.

Simply put, finance education and financial courses are available with the click of a mouse.

A finance course consists of studies relevant to global finances. Courses vary from one-time seminars, to certificate and diploma programs, to undergraduate and post-graduate degrees.

While "Finance" may seem to be a simple topic, it is actually a complex and diverse course of study. The basic area of ​​study covers everything from finance theory to the application of statistical and mathematical principles. From the basics, students of finance would pursue specialized education in areas of banking, accounting, business management, and law.

The quantities of available finance courses are bountiful. These courses focus on areas like corporate finance, investments, banking, fixed income and financial management, financial engineering, derivatives, interest rates, risk management, personal finance, computer applications of financial management, international finances, financial institutions and banking, as well as insurance and risk management. Specialized financial courses are available to help analysts and advisors build additional skills in the areas of education finance and budgeting, health care finance, global finance and managerial finance.

College finance courses take the simple finance courses outlined above and provide more details, address more issues and give undergraduate and graduate students the advantage. These college finance courses cover aspects like in-depth corporate finance, monetary economics and its position in the global economy, business economics at microeconomic level, investment management, corporate valuation, international corporate finance, analysis and financing of real estate investment, international financial markets , international banking, urban fiscal policy, fixed income securities, behavioral finance, finance of buyouts and acquisitions, among many others.

Once an advanced degree of finance study is being pursued, a student will encounter the progressive courses of econometrics, principles of micro and macro economics, statistical practice, accounting, and international trade.

It's best to understand financial courses as much as possible so you can make an informed decision and take the best steps possible to reach your objective. Our time is our so precious and despite cell phones and other conveniences we seem to never have enough of it. Below for more See information on Finance Course .

Management by Abdication

In my studies and travels this week I've had a great time meeting with old friends (I've noticed that they are getting older ??) and seeing the old neighborhood.

Traveling for some reason just seems to set me free. Even though I still have financial troubles, relationship troubles, business troubles, traveling makes me feel good about this country, opportunity, my friends, business associates and clients.

This week I was reminded of a concept called Management by Abdication. This is a concept that I first learned about in book by called E-myth.

Before we get into that though, I want you to know right up front that I'm a salesman. If you read this, you will be compelled to act, and if you work with me, I might make a commission. How's that for disclosure?

Just want to tell you that from the get go, so there is no confusion later.

So what is Management by Abdication?

Abdication is similar in meaning to the word assumption, but with some differences.

The example that was used in a book my Michael Gerber called E-myth talks about an overwhelmed business owner who hires an accountant and brings him on board, The business owner is so excited to have someone that will help him do the work, that he just piles on the workload onto the new accountant and just says … "handle it."

The accountant, knowing accounting, does his thing, and accounts. Since he has had no company manual, no real direction, and no idea of ​​what the business is all about, makes decisions on the best information that he has. The accountant certainly does want the company to do well. When he goes to ask the "boss" a question or two, the boss always answers … "Just use your best judgment, I trust you."

So the new accountant makes decisions based on his own biases, his own understanding, and his own goals for the company … Not that the accountant has done anything wrong, but the owner has given him responsibility without direction.

This is management by abdication. Giving someone the responsibility for something, without any goals, direction, or checkpoints for that person to follow.

Responsibility without accountability.

Have you heard about anything like this? Sure you have. We hear it all the time in politics, in big companies … But what about in our personal lives .. Are we doing this in our own lives too?

Sometimes Management by Abdication is good, sometimes not.

For example it's good for getting groceries. Take your favorite grocery store. We abdicate all sorts of responsibilities when we go and buy food. Obviously we can not grow fruit and vegetables, have cattle, slaughter pigs, etc. etc. to get the food that we need. So we abdicate some of that responsibility. We ASSUME that the retailer (and the supply chain) has our best interest in mind … I mean after all they do not want to kill off their customers do they? In general terms I think Assuming that the grocery store does not want to kill you is a safe assumption.

Most of them these daily abdications are safe ones … Sometimes they are not.

A really big area that I am seeing a lot of management by abdication is in the arena of personal financial planning.

Most of us learn our financial knowledge from our parents … Unfortunately they were not that great of teachers, things are totally different now, and the "pension" (which many of them are living off of now) is almost a thing of the past (except for some government employees … but that's another conversation for another day).

So what our parents taught us … Get a good education, get a good job, save your money, and you'll be OK …. Simply does not work anymore.

I run into people my age (45 and over) that are doing all of those things, and they're not OK financially.

So where do people turn to get this education about money and finances and retirement?

This is the problem .. They typically do not. They abdicate this responsibility. They do not learn the ins and outs of investing, insurance, compound interest, tax deferral, tax reduction, etc. etc. etc.

Many of them do not even know how much money they are really going to need to retire.

So they just dump that responsibility onto a financial planner, fund manager, or the 401k manager at their work.

This is management by abdication.

Does a financial planner, fund manager, or your boss at work have your best interest at heart? I'm sure they do think about you from time to time, but what do you think their best interest is?

THEMSELVES !!

Not that there is anything wrong with thinking of ourselves first. Let's just be honest about it. I'm interested in my best interest, and you yours.

But is it smart to abdicate the responsibility of our life savings to someone that has higher self interest that our interests?

I mean if your account goes down a little is your financial planner personally "hurt" like you are?

Why are we so willing to go to college for 4 years or more, do a job that we may or may not like for 40 years, and then turn the responsibility for our money over so easily?

Do they really know what our goals are? Have you set checkpoints, guidelines and status updates, and reviews to make sure they are doing what you need them to do?

You had quizzes in college to make sure you were on track. Your job gives you deadlines and projects to finish with a time line … Why do not 'you give your financial plan the same sort of tracking and guidelines?

If you're at a point in your life where you are ready to TAKE BACK RESPONSIBILITY for your money, your finances, and your retirement from whoever you've abdicated it to … Let me know.

I make money by helping people take back responsibility for their finances.

That's what I do.

Let's take responsibility back. Lets be in charge of our own lives. Lets make a difference for ourselves first.

5 Benefits of Creating a Personal Budget

A personal budget is like your own spending plan. It allows you to know where your money is spent on and how much you have to work with. Creating you own budget is not easy. But, a budget can bring you many tremendous benefits.

Here are 5 great benefits you can get from creating a personal budget.

1. A budget helps to makes it easy to save and have more extra money. By simply tracking your expenses and income and controlling how much you spend on variable expenses, you will likely find that you have more money than you thought you needed. So, with the extra money, you can either save it or set aside just a little bit of that extra money to do something fun – like take a vacation or go to that five star restaurant you've always wanted to try.

2. A budget saves you time. How long does it take you to collect information at the end of the year for taxes? As you know, gathering all of those financial documents can take days and can be extremely stressful. With a budget, all of your expenses and income, including your taxes, are documented. This is particularly the case if you use a spreadsheet program or accounting software to help to keep record.

3. A budget allows you to easily track and control your spending and reduce stress. It gives you freedom from the stress of not knowing you have enough money to cover certain expenses. You are more in control of your finances. Besides, a family budget creates an environment of teamwork and communication in the family rather than one of stress and blame. It also get family members to be accountable for the spending decisions made and the financial goals you're striving towards.

4. A solid budget makes it easy for you to make spending and investment decisions with confidence. With a solid budget in place, you know exactly where you stand financially and your investment decisions can be made with the right information at your fingertips.

5. Budgets can help you to plan for the future with ease and confidence. You will be able to plan how much to save for retirement and whether your budget allows you to get a new car soon. A budget gives you the ability and the confidence to plan for the future because you know exactly how much money you have to work with right now.

There really is no downside to budgeting. It reduces one of the most significant causes of stress and it puts you in control of your money and your future.

Budgeting: Consider a Less Labor Intensive Approach

For those of us that are in the personal finance business, the thought of putting a budget together, while not terribly exciting, is probably not considered a large task nor is it considered intimidating. We know what has to be done and most of us, I suspect, use the traditional method of determining expenses, line by line, and socking away the appropriate amount of money each month to make good on each of these expenses. Time consuming, no doubt, but not a problem for those of us that live in this world.

However, for those that have never budgeted or have a fear of detailed numbers or have a fear of what a structured budget might do to their lifestyle, the thought of creating a budget may be viewed as ominous or, at a minimum, restrictive. So, rather than engage in a practice which they know is probably good for them, they avoid "facing the music", if you will, and fail to budget altogether.

In our ideal world, we financial counselors would have each of our clients working from a traditional detailed budget; showing expenses, due dates, allocated funds, accounting for fixed and variable expenses, etc., but, unfortunately, this methodology will not work for everyone. Some people just can not live with the structure of a traditional budget or do not have the necessary discipline (many would admit to this I'm sure) to log expenses on a routine basis and monitor their budget activity. So how else might we sell budgeting to those that are unwilling to adhere to a traditional budget?

A Plan B method for budgeting

Before entering into a budget, financial counselors would typically suggest that clients have goals established; short-term, possibly medium-term goals, and long-term goals. In doing so, of course, we would ask our clients to put away the funds necessary to achieve these goals via their budgets. In other words, there would be a line item in the budget that would indicate X number of dollars are being assigned to short-term goals this month and X number of dollars are being assigned to long-term goals such as retirement.

For the individual or partnership that finds the structure of a formal, documented budget to be overwhelming or impractical due to time constraints or where they lack interest in maintaining such a plan or they simply do not have the discipline to manage a formal budget, there is hope in Plan B.

The Plan B budget involves two basic steps:

1) Goals are established and the cost to attain those goals is determined and money is put aside regularly to achieve these goals.

2) Expenses are determined and the appropriate amount of money is put aside regularly to ensure expenses are paid on time every time. Plan B budgeters are encouraged to pay bills no later than the budget due date via a bank billpay system.

The fundamental difference between the traditional budget and the Plan B budget I'm describing here, is that after I determine goals and expenses in Plan B, I do not keep a running record of expenses and payments via a formal budget plan. While, as a personal finance professional, I do not consider this the preferred way of budgeting, I view it as a reasonable alternative for those that do not want to take the time to create and live by a traditional budget or are afraid of the structure and discipline that goes along with a traditional budget.

You and I may see a budget as putting oneself in a position to spend freely after expenses are paid and goals are funded. Oftentimes, clients will view a budget as inhibiting and something to be avoided, because of the perceived negative impact on their lifestyles.

A Plan B budgeter may determine that a reasonable long-term retirement goal is $ 1 million dollars in assets by age 65. The budgeter, in this instance, will set the amount of money aside each month that is necessary to reach this long-term goal . Since the budgeter may have avoided the traditional budget due to a shortage of knowledge and discipline where financial matters are concerned, hopefully this Plan B budgeter now puts retirement savings on automatic pilot and has the required dollars taken out of his / her paycheck each month and put against the pre-established $ 1 million dollar retirement goal.

What's left over after the contribution to retirement and other pre-established goals will be put against pre-determined fixed and variable expenses; no record necessary. Clearly, the key to success here is ensuring that the calculations for goals and expenses are reasonably accurate and the income needed to meet both goals and expenses is available, not unlike traditional budgeting – just no paperwork.

Like a traditional budget, I would expect the Plan B'ers to review their goals at a minimum of once per year and adjust their goal contributions and expenses accordingly.

Again, Plan B is not the preferred method of budgeting, but if it will get the client to the same end as the traditional budgeter; the end being the achievement of goals and regularly paid expenses, consider this less labor intensive alternative to traditional budgeting.

What To Expect From a Financial Course

Thanks to the influx of technology and the Internet what once was only available to a privileged few is now available to a wide array of people from all walks of life. Thanks to online financial courses, students who once would have been unable to attend prestigious schools of finance or tertiary education colleges are now able to pursue the degrees in finance they desire.

Simply put, finance education and financial courses are available with the click of a mouse.

A finance course consists of studies relevant to global finances. Courses vary from one-time seminars, to certificate and diploma programs, to undergraduate and post-graduate degrees.

While "Finance" may seem to be a simple topic, it is actually a complex and diverse course of study. The basic area of ​​study covers everything from finance theory to the application of statistical and mathematical principles. From the basics, students of finance would pursue specialized education in areas of banking, accounting, business management, and law.

The quantities of available finance courses are bountiful. These courses focus on areas like corporate finance, investments, banking, fixed income and financial management, financial engineering, derivatives, interest rates, risk management, personal finance, computer applications of financial management, international finances, financial institutions and banking, as well as insurance and risk management. Specialized financial courses are available to help analysts and advisors build additional skills in the areas of education finance and budgeting, health care finance, global finance and managerial finance.

College finance courses take the simple finance courses outlined above and provide more details, address more issues and give undergraduate and graduate students the advantage. These college finance courses cover aspects like in-depth corporate finance, monetary economics and its position in the global economy, business economics at microeconomic level, investment management, corporate valuation, international corporate finance, analysis and financing of real estate investment, international financial markets , international banking, urban fiscal policy, fixed income securities, behavioral finance, finance of buyouts and acquisitions, among many others.

Once an advanced degree of finance study is being pursued, a student will encounter the progressive courses of econometrics, principles of micro and macro economics, statistical practice, accounting, and international trade.

It's best to understand financial courses as much as possible so you can make an informed decision and take the best steps possible to reach your objective. Our time is our so precious and despite cell phones and other conveniences we seem to never have enough of it. Below for more See information on Finance Course .

Personal Financial Planning – Risk Management

Risk management in financial planning is the systematic approach to the discovery and treatment of risk. The objective is to minimize worry by dealing with the possible losses before they happen.

The process involves:

Step 1: Identification
Step 2: Measurement
Step 3: Method
Step 4: Administration

Risk Identification

The process begins by identifying all potential losses that can cause serious financial problems.

(1) Property Losses – The direct loss that requires replacement or repair and indirect loss that requires additional expenses as a result of the loss.
(For example, the damage of the car incurs repair cost and additional expenses to rent another car while the car is being repaired.)
(2) Liability Losses – It arises from the damage of other 'property or personal injury to others.
(For example, the damage to public property as a result of a car accident.)
(3) Personal Losses – The loss of earning power due to death, disability, sickness or unemployment and the extra expenses incurred as a result of injury or illness.
(For example, the loss of employment due to cancer and the required treatment cost in addition to normal living expenses.)

Risk Measurement

Subsequently, the maximum possible loss (ie the severity) associated with the event as well as the probability of occurrence (ie the frequency) is quantified.

(1) Property Risk – The replacement cost necessary to replace or repair the damaged asset is estimated by a comparable asset at the current price. Indirect expenses for alternative arrangements like accommodation, food, transport, etc, needs to be taken into account.
(2) Liability Risk – This is considered to be unlimited as it will depend upon the severity of the event and the amount the court awards to the aggrieved party.
(3) Personal Risk – Estimate the present value of the required living expenses and additional expenses per year and computing it over a predetermined number of years at some assumed interest rate and inflation.

Methods Of Treating Risk

A combination of all or several techniques are used together to treat the risk.

(1) Avoidance – The complete elimination of the activity.
This is the most powerful technique, but also the most difficult and may sometimes be impractical. In addition, care must be taken that avoidance of one risk does not create another.
(For example, to avoid the risk associated with flying, never take a flight on the plane.)
(2) Segregation – Separating the risk.
This is a simple technique that involves not putting all your eggs in one basket.
(For example, to avoid both parents dying in a car crash together, travel in separate vehicles.)
(3) Duplication – Have more than one.
This technique requires preparation of additional back up (s).
(For example, to avoid the loss of use of a car, have 2 or more cars.)
(4) Prevention – Forestall the risk from happening.
This technique aims to reduce the frequency of the loss occurring.
(For example, to prevent fires, keep matches away from children.)
(5) Reduction – Minimize the magnitude of loss.
This technique aims to reduce loss severity and can be used before, during or after the loss has occurred.
(For example, to reduce losses as a result of a fire, install smoke detectors, sprinklers and fire extinguishers.)
(6) Retention – Self assumption of risk.
This technique involves retaining the risk consciously or more dangerous as unconsciously to finance one's own loss.
(For example, having 6 months of income in savings to protect against the risk of unemployment.)
(7) Transfer – Insurance.
This technique transfers the financial consequences to another party.
(This will be covered in more detail as a topic.)

Administration Of Method

The selected methods must be implemented.

And finally to close the loop for the process, new risks must be continually identified and all risks needs to be re-measured when required. Treatment alternatives should also be reviewed.

7 Reasons Why Saving Is So Boring

We love excitement and variety, new experiences, feelings etc. Anytime money comes into our hands, we have two options. Save and invest or spend. Saving money seems so boring while spending seems so exciting. Since we tend to move toward activities that give us pleasure and move away from activities we associate with pain, we tend to spend more than save.

Below are seven common reasons why we find saving money so boring:

  1. We do not see the end result of our saving efforts in the short term. The future seems so far away. We don’t receive instant gratification, whereas that of spending is instant. If you save, you need time for it to build up to a reasonable amount of money, enough to motivate you to keep saving. With spending, you can immediately start enjoying what you paid for the moment money changes hands.
  2. Savings looks like self denial or self deprivation. While you put your money away and console yourself with what you already have, your friends are having fun with their new acquisitions and toys. Sometimes they make you feel un-cool and miserly. When non savers are having so much fun, you begin to wonder if it is worth the trouble saving, especially when they start looking better off financially than you. The spending arena seems to be where the fun is.
  3. Saving does not boost your image or make you look affluent. You may not see, feel or touch the money you are saving or investing. There is nothing to show for your efforts. Others may be wondering what is going on, why you have not traded in your car for a new model or travel abroad for that vacation etc. Nothing much seems to be happening around you while you are saving. The grass looks greener across the fence
  4. People tend to like you more when you spend freely, especially if you are a man. You become more popular and make more friends. Cutting back may lose you some friends and may make you fall out from some social circles.
  5. Inflation can reduce the value of your savings or a market downturn can reduce the value of your investment portfolio. This makes you feel it is better to spend your money and see what you spent it on (regardless of the fact that it will end in the thrash a few years down the road) than try to build a secure financial future you are not sure of.
  6. When you cannot keep your hands away from your savings, it gets boring having to start all over again and again. Sometimes you give a loan to a friend who never pays back, and you begin to wonder if you wouldn’t have been better off spending the money on yourself in the first place rather than save and give it away.
  7. Access to easy credit makes savings boring. Why deny yourself and save now when you can have fun with your money and borrow for emergencies and investment?

Cultivating a savings habit requires a huge dose of personal discipline and delayed gratification which comes with personal growth and development. Cash flow is the life blood of any business and personal finance. If you are asset rich and cash poor, a financial setback or crisis can cause you to sell your assets at give away prices. Having cash puts you in a position of strength, and acts as a buffer in the event of a financial emergency which includes job layoffs etc. Saving might be as boring as foods that are good for you but may not taste so good initially. If you cultivate the savings habit, it soon becomes fun while giving your money away for stuff that will soon end up in the thrash becomes a painful exercise.

Personal Financial Planning – Risk Management

Risk management in financial planning is the systematic approach to the discovery and treatment of risk. The objective is to minimize worry by dealing with the possible losses before they happen.

The process involves:

Step 1: Identification

Step 2: Measurement

Step 3: Method

Step 4: Administration

Risk Identification

The process begins by identifying all potential losses that can cause serious financial problems.

(1) Property Losses – The direct loss that requires replacement or repair and indirect loss that requires additional expenses as a result of the loss.

(For example, the damage of the car incurs repair cost and additional expenses to rent another car while the car is being repaired.)

(2) Liability Losses – It arises from the damage of other’ property or personal injury to others.

(For example, the damage to public property as a result of a car accident.)

(3) Personal Losses – The loss of earning power due to death, disability, sickness or unemployment and the extra expenses incurred as a result of injury or illness.

(For example, the loss of employment due to cancer and the required treatment cost in addition to normal living expenses.)

Risk Measurement

Subsequently, the maximum possible loss (i.e. the severity) associated with the event as well as the probability of occurrence (i.e. the frequency) is quantified.

(1) Property Risk – The replacement cost necessary to replace or repair the damaged asset is estimated by a comparable asset at the current price. Indirect expenses for alternative arrangements like accommodation, food, transport, etc, needs to be taken into account.

(2) Liability Risk – This is considered to be unlimited as it will depend upon the severity of the event and the amount the court awards to the aggrieved party.

(3) Personal Risk – Estimate the present value of the required living expenses and additional expenses per year and computing it over a predetermined number of years at some assumed interest rate and inflation.

Methods Of Treating Risk

A combination of all or several techniques are used together to treat the risk.

(1) Avoidance – The complete elimination of the activity.

This is the most powerful technique, but also the most difficult and may sometimes be impractical. In addition, care must be taken that avoidance of one risk does not create another.

(For example, to avoid the risk associated with flying, never take a flight on the plane.)

(2) Segregation – Separating the risk.

This is a simple technique that involves not putting all your eggs in one basket.

(For example, to avoid both parents dying in a car crash together, travel in separate vehicles.)

(3) Duplication – Have more than one.

This technique requires preparation of additional back up(s).

(For example, to avoid the loss of use of a car, have 2 or more cars.)

(4) Prevention – Forestall the risk from happening.

This technique aims to reduce the frequency of the loss occurring.

(For example, to prevent fires, keep matches away from children.)

(5) Reduction – Minimize the magnitude of loss.

This technique aims to reduce loss severity and can be used before, during or after the loss has occurred.

(For example, to reduce losses as a result of a fire, install smoke detectors, sprinklers and fire extinguishers.)

(6) Retention – Self assumption of risk.

This technique involves retaining the risk consciously or more dangerous as unconsciously to finance one’s own loss.

(For example, having 6 months of income in savings to protect against the risk of unemployment.)

(7) Transfer – Insurance.

This technique transfers the financial consequences to another party.

(This will be covered in more detail as a topic.)

Administration Of Method

The selected methods must be implemented.

And finally to close the loop for the process, new risks must be continually identified and all risks needs to be re-measured when required. Treatment alternatives should also be reviewed.

Money Pros and Cons – Personal Finance Basics

Is money good or is it bad? Depending how you view it, cash can be good but it has the potential to be a bad thing as well. Money can be good because it allows you the exact lifestyle you desire. It has the ability to fund your dreams such as going on holidays or could allow the chance for an early retirement. Money creates the chance to create a family, live in the city you want and allows to you to do anything you can imagine. Proper money management is the simplest way to understand personal finance basics.

The down side to money is if you live for it. By slaving away working at a place you don’t like to earn money makes it bad. Cash can misguide many of Americans to become workaholics and desert their loved ones.

Without a doubt cash does have more good aspects than bad. Unfortunately the bad things related to money are often tied with misuse or greed.

What is Money to you?

Is earning lots of money to live the life of luxury is important to you or do you want to make just enough so you can live modestly. The choice is simple with little grey area and we all make that choice when dealing with the personal finance basics in our lives.

If you want to work 60 hours a week so you can afford to drive an expensive vehicle and own a 4000 square foot home is the way you enjoy living then more power to you. Sadly, I believe|in my opinion} you have become a slave to cash if you must work that much to drive that car or live in that home.

On the other hand if you want to have 100% freedom and 0% responsibility then you are a slave to yourself. Money probably has no value to you and you make just enough to make ends meet. Is that bad? Who am I to say.

I’m certain there can be a happy medium when it comes to money. You can get all of the pros and none of the cons. Working hard is incredibly important but it’s good to know that you should not work for money. The more you understand personal finance basics, the more it will start to give back to you and the less you will be it’s slave.

The best advice I can give is to find an occupation that you love and would probably do it for free anyway. If you’re not happy at your job chances are it’s because you only see the dollar signs associated with the job. The way to make money a positive factor to you is to alter the way you think and love where you are. The great thing is, the more passion you put into everything in your life, the more money you will make and the happier you will be. In short you will work less and make more.

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