Not everyone finds it necessary to budget their monthly income. Most people prefer to go with the flow. They find budgeting to be a tedious bore. Sure, they know when it’s time to pay rent or restock groceries. But they don’t care much about keeping track of where their cash goes each month. All they know is that money was made and money was spent. They can’t make an exact accounting.
On the other hand, there are those who like to keep track of how they spend their money each month. Once they receive the month’s earnings, they divide it into portions to take care of different expenses, for example, transport, grocery shopping, eating out, entertainment, and so on. At the end of the month, they can tell the areas in which they exceeded their budget or spent less than they budgeted.
While budgeting is a wonderful way to keep track of your money, you have to ensure that you make them realistic. Unrealistic budgets could disrupt your life, causing financial instability rather than fixing it.
4. Positive Energy vs. Negative Energy
Most of us grew up to phrases like, ‘Money is the root of all evil.’ The way people around you, your family most of all, talked about money made an impact on you, whether you are aware of it or not.
When you have a negative mindset, you’ll end up repelling money rather than attracting it. When you see someone riding a nice car and living a good life, the first thought that comes to your mind is, ‘They’re probably fraudsters or unwashed traders,’ without knowing for sure how they got to be rich. Such thoughts close your mind to finding innovative ways to create wealth.
Sometimes, a negative money mindset could be as simple as feeling guilty when you spend a little bit extra on yourself, even though you work hard enough to make a decent living.
Money comes not to those who desire it, but to those who plan for it.
Divide your earnings so that you may live a balanced life: