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…