Burning a hole in your pocket…

Years ago, I met a person who never seemed to hold onto money.

My mother’s statement for people like that is, Money is always burning a hole in their pocket.  She also likes to say… “Spending money on things you don’t need, to impress people you don’t know!”

I, along with a few others within their circle were occasionally asked for loans.  After loaning them money twice my answer was no… I also (politely) gave them some advice… learn how to manage your money. There are a lot of great tools to help you do that, if you don’t already know. I do remember them becoming indignant, that I would even suggest that they needed to learn how to manage their money better. He went on to tell me that none of his friends ever told him that. My reply, was if his friends truly cared about him they would be concerned and suggest that he make better choices.

I’m straightforward, so my response shouldn’t have come as a surprise. It’s foolish to always think you’ll have people to support you financially. What’s really sad is his money issues could have been avoided if he hadn’t put his wants ahead of his needs. That’s not the smartest approach, is it?

Years ago, I used to keep track of my budget on paper, and then I (eventually) moved onto a Excel spreadsheet. About eight years ago, I started using Quicken Intuit, I must say that I really like their software, since it does a great job of tracking my finances/investments. I set a budget, and when it comes to my wants list, I don’t overspend. In fact there are many months when I don’t even touch the money that I’ve allotted for that purpose. I’ve given myself a budget, and my wants never trump my obligations, which is how it should be. I’m teaching my daughter  the importance of making smart choices, as she gets older I hope she adheres to to what she’s been taught.

Occasionally, you have unexpected expenses, but I have designated a fund for that. None of this was achieved overnight, but with time, diligence, setting realistic goals, and actually adhering to a smart financial plan… it’s worked. I wish the US government would follow the same principles…

4 Responses to Burning a hole in your pocket…

  1. Mike says:

    We have always managed to take care of our expenses. There was a time when our debt was uncomfortably high, but it was never beyond what we were able to pay for, even if we didn’t seem to have much after the bills were paid.

    I agree with what you said about the government and financial planning. Unfortunately, some of those in power seem to be playing political games at the expense of our future. I am very pessimistic about the economic future of our country at this point. The financial obligations already exceed our ability to pay — and the president wants another stimulus package.
    Mike recently posted..The Delayed Dance at Hay Corners.

    [Reply]

    Opal Reply:

    @Mike, I’m with you regarding the future of our country. I must say, that I’m really tired of the politicians that play these political games at the expense of the citizens. The president’s last stimulus package wasn’t effective. I’m definitely not buying that the proposed package will be any better.

    I’m not a fan of Obama, the plans proposed by him and many of our elected officials simply aren’t feasible and show they don’t care about US citizens. From an economic standpoint their plans will cause even more financial hardships. Since I’m aware of this, I’m doing my best to prepare…

    [Reply]

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