Budget Miracle

By Yaro on Tuesday, May 28, 2024

When you read financial blogs, you feel like there are people who know how to help you live better without you doing anything. They look ready to give you a friendly hand and guide you to a better place. It seems that a budget miracle is waiting for you on the other side of the yellow-brick road.

The truth is, there is no miracle. You either start spending less by cutting out things you want to spend on (otherwise, why would you spend on them?) or find a way to earn more money. Most people stick to the first option. If increasing income was easy, everyone would do that. Say, you want a new car and you ask for a promotion. We know it doesn’t work that way. Finding a second job isn’t trivial either, as it often comes to your watch having only 24 hours a day. Although, we did give some useful tips about increasing income here.

When you get on a budget, you calculate your income (or average income) and adjust your spending to that amount. It is that simple and there are only three ways that work for everyone.

• buying cheaper goods (possibly at a discount)
• excluding something from your shopping list or daily routine (restaurants, a paid parking space, etc)
• buying fewer things (clothes, video games, coffees to go, you name it)

All three are painful and nothing will make them less painful. However, Money Pro will help you see your income and expense categories in one place, all nicely arranged, so you can apply the three ’tools’ as you see fit.

These tools can help you achieve financial stability. However, you will have to work hard on it and that isn’t something you can do once and forget about. You will need to change your lifestyle. The aim is to get rid of any interest you pay and never go back to it. Be it a loan or credit card interest, you should focus on paying it off as soon as possible. During that time, you are going to use the tools pretty extensively. You are also going to need discipline and patience. Then, something has to be done to protect you from getting in the same situation again, that is an emergency fund. Only then will you be able to sigh with relief.

In fact, that above is an ideal situation, and having a loan might be just fine, especially if you know that something is going to get more expensive or the amount is too high to pay at once. But it should always be a calculated move when you are confident that you can make regular payments and your loss will not exceed the profit. There you have your budget. It will tell you what monthly payments you can afford and make you confident about them. Budget is a road, not a short path to a miracle. It is the road you go by living within your means.

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