Posts Tagged ‘Financial Management’

Nice To Have Unexpected Income

Saturday, March 15th, 2014 by

I often hear people complain when they have unexpected bills as it often ruins their financial plans for the month. Today for myself I had the opposite issue where I got some unexpected income from one source where it accumulated enough funds to generate a payment. While it doesn’t really make anything different financially for the month, what it made me think of is the confidence boost it gives you where it essentially makes you under budget for the month.

That’s something we all need I think where it’s like a little reward to encourage you to keep being financially responsible. Of course to do this that means you have to be willing to do something extra too even if it means sacrificing some play time to develop what can potentially be a nice source of side income. It may never pan out, but that’s risk one needs to take I say to potentially get the reward.

Spending A Weekly Income In One Day

Sunday, March 2nd, 2014 by

I don’t usually do this very often but today I ended up spending an entire cheque from one source in a day as I decided to invest in some resources to increase my productivity for a project. While it in no way puts me in any financial danger or anything I usually don’t like doing this as I feel it makes it more likely you will become a pay cheque to pay cheque type of person.

Usually the way I discipline myself is that I save up my income and if I am interested in buying something that costs a lot I wait until I save about three times as much as the cost of the item before considering it. That way when I make the purchase there is no way it will create financial stress and at the same time it gives me a grace period to really think if I need it or if there is something better.

In most cases too it’s usually a want as oppose to a mandatory need. In this scenario though for me it simply came down to the time factor where if time equals money then technically I should be saving/making more this way with the investment. Can’t do this too much though.

Paying All The Bills At Once

Tuesday, February 18th, 2014 by

One of the habits I have in terms of paying bills which I find helps to keep me organize is that I usually try and pay for everything on the same day when possible. For example, I would often get things like my monthly cell phone bill along with other things. Since I usually have a few weeks until the actual due date upon receiving the statement, what I do is wait for all of my monthly bills and then once I receive them I pay them all off on the same day.

I know this doesn’t exactly sound like an extremely difficult or technically ingenious way to manage money, but for me it ensures that I am dedicating a day to make sure everything is paid off. I personally find that you can easily forget about your finances if you simply wing it, so to speak, as opposed to actually dedicating time to making sure everything is in check.

Not only that, but in order to pay your bills this way it means you must know pretty much by heart on when your due dates are for everything. You may think this is daunting, but when you make your finances a lifestyle habit like this it will simply be natural habit.

Keeping Track of Daily Earnings

Thursday, February 6th, 2014 by

I was thinking today as I was looking at a report that tells me how much income I have been generating through various sources and at the same time it tells me how my numbers were on the previous month during the same day as well. I must say, seeing it display things such as this month the earnings were 150% more or say the day before was 80% less sure makes you think and want to act quickly in figuring out why that is the case.

I was wondering how effective this would be for personal finance such as if people actually broke it down and compared their spending and earning habits daily as opposed to weekly or monthly. I would be inclined to say this would make people better in managing their finances while at the same time encouraging people to find ways to do things better as opposed to settling for a routine without growth.

This is probably a lot more accessible these days too with things such as apps that you can use to do such a thing. I know for myself I never did this for my personal finance as the time to number crunch everything like that would be very time consuming. With a lot of free options though, maybe it’s not a bad idea.

Even The Queen Needs To Worry About Finance

Tuesday, January 28th, 2014 by

While watching the news today there was a story on how Queen Elizabeth needs to start managing her money a little better as apparently last year she spent way beyond her means and is now down to her last million dollars. This of course resulted in people providing insights and advice on how to reverse the situation.

One advice I read was that she should consider opening the palace to tourists more frequently as it would be a way to generate more income. What this made me think of is how the time to start thinking of things like this should be right now even if we are in a good financial position and not only when we find ourselves in a financial dilemma. I guess it’s like saying, does it make sense to only be conscious about your health only when you are on the brinks of going to the hospital for example?

I guess for many of us we simply don’t feel the urgency to do things like this unless life is forcing us to, so to speak. As shown though I suppose, even the wealthy needs to worry about finance and cash flow as eventually the money runs out.