Recently I was with a group of people and a conversation came up about maintaining ones health and one person was saying how he can’t eat too much of a particular item otherwise he will gain weight. Now she seemed like she did a lot of physical activities too and so you would think one wouldn’t have an issue with things like that. Afterwards I realized that she was into things such as smoking and drinking alcohol. So in my mind I thought that kind of explained some points about the weight issue.

At the same time, she was also talking about finances and how she tries so much yet it seems like it is such a challenge to stay balanced at the end of the month. I was just thinking about her habits though such as those cigarettes and how that is probably one huge monthly expense alone. I’m almost inclined to say that it would be close to a monthly gas bill for people who drive a car.

I personally dislike some styles of budgeting where people create charts outlining if you do two things good to save money then that means you can do two things that are bad in terms of spending it. Hence, you are always just breaking even. Is that really a good way to manage your finances though? Would that make sense in say a business where the strategy is if you get one happy customer then that gives you one customer to make angry?

In many ways I think focusing on your habits is more effective than just creating budgets in general. Cause with that you are focused on living a particular lifestyle which is the key to producing results personally and financially.

I was reading this magazine today and one of the articles dealt with saving and managing money at an early age. It listed examples such as a person who saves $1000 in a savings account at age 18 compared to a person that spends it on something such as a portable music player. Typical example on how when they reach at the age of 50 the person that saved would have five figures in accumulated interest and all.

One key point that they emphasized on why you should learn to save and manage your money well is for your own physical health. The reason being was that most people that just blow their money tend to become more stressed out in the long run and the stress can create health implications.

Kind of ironic in some ways when I think about in terms of the spending vs saving money aspects when it comes to stress relieve. I say that because most of the things people would over indulge in is to have fun and relax in life such as going on expensive vacations, buying these high end entertainment systems they need credit to buy and so fourth.

Makes you wonder what is a good middle ground in terms of saving or spending money to relieve stress. The choice of wording was interesting too in the article as it mentioned that you need to suffer a little now to make things a lot better later. That was aimed at people who insist in buying things impulsively or as a form of a status symbol. I can’t honestly say that I have ever made myself “suffer” in terms of saving and managing money as oppose to life experience.

I guess it’s like exercising. It’s more about what you do in the day and not some kind of diet plan. Similar with managing money, I make choices that revolve around my daily lifestyle to keep an optimal financial situation and afterwards it just becomes a habit that only makes sense to continue.

Example, you start shopping for your own groceries and making your own meals as a lifestyle choice and you soon realize how little you are getting for your dollar when going to say a fast food restaurant. Soda’s are the best example at fast food places if you drink those. $1 for that little cup of Coke or 79 cent for a 2 litre at the store? You just kind of don’t want to waste your money like that more often after awhile.

Creates less stress overall afterwards too when you realize how much more money you have in your pocket when making better decisions. They say laughing is suppose to be good for your health. So I guess one way to look at it is I would rather still be smiling or laughing when the monthly bill comes as oppose to crying and moaning. So based on that article, indirectly it should make you live longer and healthier.

I was asked an interesting question where if I was in a situation where money was going to be an issue, would my first reaction be to find a way to make or save more money? While ideally I guess I would do both, my personal mentality is to usually focus in finding a way to make more money.

I personally feel in these types of situations, and assuming you are already pretty good with money in general, making more money gives you more potential to discover new opportunities that may be a better fit for your current lifestyle.

For example, I know for myself when it comes to saving money it is more about finding ways to use what I already have and do while making it work better. On the other hand, making more money usually involves having to step out of my comfort zone to potential create something that can vastly change my current situation.

As well, when it comes to making more money I specifically mean trying to do something different as opposed to say someone asking their employer for a raise at their existing job. Especially if the situation arose as a result of an outside factor that usually entails that you have to do something drastically different to adapt to the situation. It could be simply doing additional side work or starting a part time business.

Like everything too, the more you practice the better you will be at it. In these cases, it’s usually fear that stops people from seriously discovering additional ways to earn an income and so the more you do the more likely you can create viable streams of income to fill whatever financial needs that you have.

Recently I saw a person who mentioned that times today are so much harder than say 20-30 years ago during his parent’s time in terms of the ability to become financially independent. Factors range such as the rising price of standard living expenses and how the dollar can’t buy as much these days.

I personally hate it when people say things like that as a reason why they are in some kind of financial predicament. Sure, maybe we can’t buy like a whole whack of stuff for 10 cent like they did, but look at how we have so much more opportunity and choices available.

For example, I know for my parents if they wanted to make an income they were pretty much stuck having to do some kind work that required a physical presence as the choices weren’t as open. Nowadays, there are so many things you can do that doesn’t require you to be there all the time. Like with that things may cost more, but you can make more too which in a sense makes it the same if not better from a financial point of view.

I was reading the news on how in 2009 anyone 18 years or older can place up to $5000 annually into what is being dubbed as a Tax Free Savings Account (TFSA) here in Canada. From what I gathered, you can essentially earn and withdraw money from these accounts without any worry of being taxed.

It sounds like a great idea to me at this point. I have never been a fan of things like an RRSP personally and this TFSA seems like it would have a more universal appeal to encourage people to save their money. It’s almost like having a regular bank account with some good benefits.