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Budgeting, as a concept, is very simple. You manage the inputs and outputs, I hope to keep the last one higher than the former …
If you’re something like me, you’ve learned the basics of budgeting when you were 10 years old, playing
At the end of the day, you just introduced a red sports car with a laser gun in the ashparchka and tore the Celts new.
In this life, budgeting is even more important. The lack of a parchet and the general importance of having enough money to eat should have a little budgetary discretion. If you want to graduate from college and end your debts, well, you need to know a little more …
Today, I will take my thoughts and experience in the field of budgeting with a focus on.
Let’ s put something out here. If you look at my other Ultimate Guide fasting, one on.
Well, honestly, I don’t want you to put a lot of thought into the budget. This should be simple and, after some initial setup, it should be no more than a background process in your head. This should not be a matter of too great concern as soon as you properly structure everything and correct your habits of spending ..
Think of the perfect picture of “budgeting”. What’s going on? Do you think about the financial position of a member of the family sitting at the table every month, writing expendables in all categories of family expenses and balancing the available funds?
This, my friend, is called.
Here’s an excerpt from Jeff Yeager’s book.“Contrary to what appears to be unheathed, only about 10% of the” heapskats “ survey said they had a formal, written household budget. For most of us, the budget seems too much like a diet: a plan that always hangs over you, leads you down when what you really need is a change in a durable way of life that makes the desired behavior without effort. “
That, ladies and gentlemen, is why.
The subs are well defined objectives > micro-management. It’s true for studying, it’s true for diet and exercise, and it’s true for budgeting …
So let us immerse ourselves in this deliberately brief guide (by my standards, at least), starting with these most important goals!.
Let’ s talk about this.
This, in fact, is a good way to think about your financial life as a business, you have revenues, expenses, and (hopefully) goals. You don’t have any interns to get you coffee every 15 minutes, or the crack of elite hackers to do your spy work, but we’ll figure out what we have …
So let’ s put this into your own life:
In order to be good in tactical and operational areas, there is a need for a firm strategy-the financial purpose ..
If you look at my life section,
By the time I (with my girlfriend Anna) turn 40, I want to have $900,000 invested. At this point, I can do it efficiently.
It’s not to say that I want to stop working at 40; creating things brings me too much joy to do that. I’ll probably never stop working. Nevertheless, I want to be reeling from my need to pay for my existence. My target is
We must therefore economize.
“But that goal is crazy!”
Here’s my goal:
Two years ago, it wasn’t my situation. I was still in college, I had $14,000 in student loans, and I didn’ t make much money. At that time, my financial goal was significantly different:
It was a completely different goal, but it was still clearly defined on the basis of my situation. Since it gave me a clear direction, I have.
This is your mission at this point:
Back to our business analogy. Another exciting term we’ve learned about in business class is how to do it.
Guess what, you can do it, too! But let’ s change a little bit: instead of SWOT, your personal analysis of your finances is given a decryption acronym.
so it’s not much different from SWOT …
Take time and assess your own situation in each of these areas. How much do you do every month?
For opportunities, consider the possibility that your income may increase in the near future. Do the same as for threats-think ahead and estimate any potential high costs that may be going your way …
One exercise I recommend to do here is.
Living in the middle of Iowa with three roommates, my number is very low. It doesn’t include my business expenses, and it’s certainly nowhere near what I’m actually doing, but it’s.
That would be to cancel all my subscriptions to things like Spotify, taking a bus or my bike everywhere and being.
Pretty low, huh? Your number may be higher or lower, but in any case, it’s good to know. This will be an integral part of the next step ..
The goal is to be.
I have a brain that likes to visualize a lot and create analogies for everything. To that end, I think of managing money from the point of view.
The main reason I use this analogy is what I want to create.
My goal is to build the system, then let it do its work and keep an eye on it ..
At the top, we have revenues. The way the pipeline project, the most important areas, must be filled first before money can flow into the next area. So, when the money comes, we’ll take the money (in order):
The biggest thing to keep in mind is what it is.
Take your debt, for instance. You will not make a minimum payment, then fill in your account, then make an additional payment. Rather, you will use the pipeline as a scheduling tool when revenue hits the bank account. An example of the process is:.
” I must at least $50 on my student loan, and I need to put $800 in check to keep it at the desired level. I have $2,000 left after constant spending, and my emergency fund is full. So I can actually put $1,200 in debt this month instead of $50. Evaluation! “.
So let’ s talk about yours.Personally, I agree with that mood, though I’m a little bit cheekled. I want 250-300% of what I need.
You can go anyway, assuming you are comfortable-if you are rolling at least 2.5x the “number” you received in the last step, you will not be completely re-bits if something happens. That’s what you want to avoid. To be completely lame, and almost always, is a one-way ticket to a huge debt on credit cards, criptive stress, or family members who are horribly breaking your money …
The last thing you might be interested in is
“I need a savings account?”
The answer … maybe. Here’s the thing:
So, in fact, all savings accounts are available.
Actually, I’m holding my emergency fund on my investment account. Thus, from the point of view of the pipe, the top of the fountain is the same as the bottom. Even though it’s very important, it’s true.Some people might say it’s risky to keep my emergency fund in investment. I would have accepted it if I invested in separate shares. However, I am a passive investor, and all my money is in mutual funds, which are unlikely to be merged overnight. There’s a risk, but the odds are that I’ll be fine, and I have my own account filled just in case …
With the help of a pipeline model, which is now firmly planted in the prefrontal cortex, you will no longer be sure what to do when you get a salary every month. Now there is a clear idea of how this money should be made, and where it should be the first …
Let’ s have some more. Let’ s build it.The way I did it was a set-up.
In addition to my fixed costs, I also automate my own.
When I can, I’m spending the expense transactions through my credit card so I can get cash bonuses. Oh, it reminds me of what I wanted to do on the credit cards …
Use it astounding, only by cutting a few watermelons in the air, and clean it on a regular basis, and that the katana will remain in perfect shape.
To protect too many watermelons and to ignore it to clear the blade, and you have a problem.
But credit card companies are evil.
So I don’t want to get into that too much, that’s mine.
I’ll add you an idea for them. It’s not what I’m doing, but if you want to get a loan while you’re holding your check, it’s an option.
Consider your credit card a different way of paying. This is not a credit line, it’s just another way of payment-one, more complex, but which can have some advantages …
The last thing I say here is that I am.
Like I said, you’re gonna have to deal in college.Every semester, you may need to buy/pay for:
You may have student loans every semester to pay for these things (though, if you do, make sure you do.
Whatever your source of funding, make sure you are.
Oh, and if you’re done with.
Okay, this is a point in the process, when most people start to emphasize their budgets. As soon as your fixed expenses are covered and your savings were met, what’s left of you to spend … but remember, you will have a case.
People get stressed because they are.
Then they went back to Starbucks the next morning because,
“Today I’m going to start making coffee at home tomorrow, I swear.”
This thing is me.
What I’m doing here is.One very simple way to do this.
If you want to go further than that,
It was a manual tracking.
The idea is to track costs as an integral part.
Without registering a transaction, it is easy to understand the cost of getting this reward-and therefore the habit of spending remains unchanged ..
You can also get into.
In addition to changing your habits, you also have to look for ways to reduce irregular expenses …
There are plenty of ways in college to do that. I’m just a few things:
Yes, fruity! Oh, I have to mention that.If you want more on the fruit train, mine.
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Now, this should be a good idea about how to start “budgeting” as a student. There are many other issues related to this, and you may have a few questions. I have already written a lot here, so many of the related things fall outside the scope of this article-but I’m going to respond to some of them in the style of rappe-fire in any case …
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First, I will write more about how to manage your money in the future. To be notified when I do so, please subscribe to the InfoGoo College newsletter. You will receive a free copy of the book 100 +.
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