Budgeting 101

Dated: September 22 2019

Views: 51

It is quite typical in human psychology that if something seems intimidating or might give us answers that we don't like ,we pretend that it is not there and put it aside or completely ignore it. Money is one of these "intimidating" topics that are easily ignored. We are people think that if we look at our finances it might be a little intimidating, but also it might give us answers that we don't like. The answers to each individual might vary but generally they involve negative answers - I can't actually buy that fancy car, I can't go to a fancy dinner with my friends or I can't buy that fancy suit. Generally, we don't like rejections and negative answers, because we want to be able to buy what we want and go to the fancy restaurant and meet with our friends, so instead we chose to ignore the topic of finance and put it aside without facing it head on.

DO NOT DO THAT! That is a sure formula to set yourself up for a big disaster. Yes, in the short term you might enjoy the vacation, the suit or the fancy car but in the long term if you are not thinking about your finances you are going to have a lot of sleepless nights in which you are staying up wide awake. It is going to cause you stress, it is going to make it hard for you to engage with friends, family, work. Short term gain for a long-term pain is not a good trade off.

 I would encourage you to grab a piece of paper and a pen and sharpen up your basic math. It does not have to be complicated and I promise you that you do not need to get a PHD in finance or be an excel sheets wizard. Simply look at your pay stub. Note whow much after-tax income are you bringing home. Then think about how much are your expenditures - rent, groceries, clothes, vacations, entertainment, transportation expenses (bus, car, ICBC insurance, gas) and any other expenses that might be coming out of your wallet.

The first step is to write down how much do you think you are spending on the above mentioned things and second go to your online banking account and see what the reality is. You might get surprised. You might have initially thought that you are spending 100 on eating our but in fact you are spending $350 on eating out which is a lot more than you initially thought. This is how the simplest budgets are done. Make sure that at the minimum you live in a sustainable way. That will ensure that you can afford yo pay your rent and all of your expenses. Ideally (and that is what I tell to all my friends, family and clients) - live below your means.Graduation

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Momo Kanev

Momo Kanev, exemplifies integrity, energy, hard work and creativity in every detail of the real estate transaction process. Momo, has over 10 years of experience in the construction industry. He speci....

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