For most of us, every pay day is a happy day. We get to spend time on the mall or even eat in a fancy restaurant as long as it is within the budget. However the big question is, do you really have a budget? Or in a wider perspective, does your budget allow you to save? Now you might be wondering why is it that you still feel poor even though you have a reasonable income. Below are some the reasons on why is it that you experience and feel such poverty despite an open cash flow.
Spending More
One of the basic and most common financial advises you may hear from financial adviser or even from your parents is the importance of saving. There is really nothing wrong in spending, especially if it is for you needs or simply raising a bit the level of comfort in life. However, if you will become a spendthrift in the process problems might ensue, especially if your finances are not increasing and yet expenditures are doubling. In such a manner saving money would be impossible, that is why it would be wise to be prudent and exercise temperance. Focus not only on the present, but also for the years to come. Who knows a heavy rain might cross your ways.
No Record
Like most companies which keep records about every transactions they make and to where the money goes, you yourself should likewise do the same. You might be caught into thinking that you know where your finances usually would go. However the sad reality is that we only keep track most of the huge amount we spend and forget small pay outs. And such small thing you pay for is actually eating up your finances when combined. That is why record in a small journal your income and expenses. You might do it daily or weekly, but it would be efficient to do it daily so that you will not forget things. And in such a way you will have much better idea on where your money really goes and how to properly control your finances.
Unrealistic Budget
Recording would really be more helpful if you will use it as a platform for your budget setting. The records would be of less use if you will not set any budget for yourself. In the absence of well-documented and realistic budget it would be very easy for you be carried away and buy things unceasingly. That is why you need to identify first your needs and wants and how it would relate to your current financial status, and such way budget setting would be more clear and efficient.
Managing your income is quite a tedious task for some, especially if they are not use to the proper way of doing things. But if you are aiming to become rich, then you better start saving. And spend you assets wisely. For no matter how hard you work, still if your view and approach with regards to money is immature then your finances would surely not mature.
