I was just told this observation where when it comes to managing money and teaching younger people as well as some older people about it, one of the key reasons why one would tend to mismanage their funds is that they don’t fully grasp the concept that you can run out of money.

Sounds kind of strange when you think about it huh? In a broader perspective I guess that makes sense. For example, nowadays when one runs out of money there are so many options to still get what you want such as through credit or even borrowing from others.

This must be one of the simpler things to learn though if it is an issue in one’s financial situation as I’m sure even things like having to buy certain grocery items with an X amount of dollars would help lot.

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I had an interesting conversation recently where the topic revolved around a person expressing how the age range of 20 to 30 is your time to try as many things as you can to earn an income and that by 30 you are kind of too old to not just settle down by then on one thing only.

I was having a debate with him about this as I don’t see what age had to do with it as I believe it had more to do with your circumstances and what you really want. Does anyone ever truly quit exploring ways to generate money? Even if you are doing very well you should still find ways to do more in my opinion.

The number one reason that I was told on why by 30 you should just settle down is due to marriage/family reasons as you need the financial stability to sustain one and that people’s “biological clocks” are ticking which means you shouldn’t be in that risk taking mentality anymore. I would think just by looking at all those family owned businesses would say otherwise.

If age does limit anything when it comes to financial exploration, in my opinion it’s that it restricts you in terms of the type of approaches you can use to achieve a goal. That doesn’t stop you from exploring still and being able to reach the same finish line though.

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Today I went to get a haircut at the usual place that I go to and the couple that own and operate the business came back from a vacation. As expected, they mentioned that they had a wonderful time and their kids didn’t want to leave.

The lady mentioned how it wasn’t too bad financially as the whole two week trip for everyone came out to around $3000. While she mentioned she would love to do it again since it was so cheap, she brought up the point on how a lot of people neglect to remember that at the same time when you don’t work you are losing even more money in multiple ways. Example, no revenue is coming in and your building rent is going to waste.

With that in mind, that’s always the main reason why it is wise to try and establish some form of passive income source so that you can still generate an income even while you are not there. With her situation it kind of forces you to be more diligent with money since there is a business involved. In general though, it’s all about understanding where your money is coming and going.

Like with the vacation example, if you just see it as you have $3000 so it’s time to take a trip, it’s kind of a setup up to be living in a just getting by situation. Always have an income plan for downtimes as well.

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Around this time of the month I would get my cell phone bill and as you all know I switched to a new plan not too long ago. This month was my first billing under this new plan. I was just looking at the bill compared to last month on how much money is going to be saved once I saw this:

Granted every month it is a little different, just looking at the $55.93 total from last month to $17.87 this month while getting more features than before is quite a substantial difference. If those numbers were consistent, that would roughly mean a $456.72 savings a year.

While many people say who cares to a little bit of savings on various things, a little bit of effort to get a better deal can sure look nice in the long run.

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I had a conversation with a person today in regards to a cell phone bill as last month he racked up a three figure bill. He did mention how he was used to US plans instead which offered more for less, but that’s another story.

What this did remind me of is how a lot of people place restrictions and credit limitations on various service subscriptions to prevent any type of overspending. For example, when it comes to cell phone services, a lot of people use pre-paid cards to prevent any surprises.

I think the only time I did this was back when dial-up Internet was pretty much the only feasible option as the service would just get cut off after X amount of hours instead of going on a plan that continually billed by the hour. It tends to make you a little more money conscience too with your finances I think.

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