I just read a great book called Robin Hood Math that is all about taking our power back from algorithms and creating our own metrics. The same is true with financial rules.
I believe in knowing my required expenses; housing, food, transportation. I am currently relying on a meal preparation service for most of my meals. I am a good and healthy cook, my husband's diease dosen't allow me the time or energy to cook most days.
I think it's considered "bad" debt because lenders cannot grab items purchased with that type of debt for resale.
I am a huge fan of budgeting but not in a restrictive way. Far more I feel relaxed knowing that everything is well planned and going its way. I still like spending but since budgeting my money I realize that I am more mindful and aligned with my values. That takes me to the second point. Yes, you are right, it´s difficult to separate between wants and needs. I like to categorize my expenses more value based. Which also means I liek spending money on my neccessities because they allow me my lifestyle :) ... and bad vs. good debt I never liked that definition. Besides my opinion: I really enjoy reading your post especially as they are always looking from another perspective.
I don't think I completely agree. It's true most people don't understand or use budgets correctly, but if you go at it with the mindset of simply knowing where every $ is going, I think it's tremendously helpful. Or if you're trying to track cash flow because you're saving for something or paying off debt.
I'm also not sure about the "go with your gut instinct". Depending on how you're raised, you might have bad money habits that are hurting you financially, like emotional spending. Being aware of stuff like that is important & like most habits, it usually takes someone else telling you for you to realize it.
Again, budgeting may not be the answer. But being aware of your money habits, how much you spend or save and on what, and planning long time goals are important.
Also, on a broader scope, just having financial or career blindness. Like, for example, knowing how much you need to make in a year to live comfortably. After taxes. It's very basic, but people aren't taught this & just accept pay thinking it's enough & it's not.
I don’t agree with the premise that budgets are *always* restrictive.
They *can* be, but they don’t have to be. Sometimes they can give you *permission* to spend in an area that you recognize has value in your life, and can help you balance present-moment desires with longer-term goals. If you budget for a vacation rather than spend “instinctively” for it, you can stress less about the money you’re dropping during a trip knowing you’ve set a generous chunk aside for it. You don’t worry as much about what impact that trip is having on your ability to pay for life maintenance (rent, insurance, other every day wants). Budgets keep me clear-eyed about what I want to make space for. They’re a mirror. I’m not judging myself when I look in that mirror, but I get how some people can feel tempted to.
Also, credit card debt at 25% is…not ideal. And there are ways around it! (NFCC.org, balance transfer cards) I don’t think it’s controversial to say that.
I just read a great book called Robin Hood Math that is all about taking our power back from algorithms and creating our own metrics. The same is true with financial rules.
Love that idea! I’ll have to check out the book, thank you.
I believe in knowing my required expenses; housing, food, transportation. I am currently relying on a meal preparation service for most of my meals. I am a good and healthy cook, my husband's diease dosen't allow me the time or energy to cook most days.
I think it's considered "bad" debt because lenders cannot grab items purchased with that type of debt for resale.
I am a huge fan of budgeting but not in a restrictive way. Far more I feel relaxed knowing that everything is well planned and going its way. I still like spending but since budgeting my money I realize that I am more mindful and aligned with my values. That takes me to the second point. Yes, you are right, it´s difficult to separate between wants and needs. I like to categorize my expenses more value based. Which also means I liek spending money on my neccessities because they allow me my lifestyle :) ... and bad vs. good debt I never liked that definition. Besides my opinion: I really enjoy reading your post especially as they are always looking from another perspective.
Interesting.
I don't think I completely agree. It's true most people don't understand or use budgets correctly, but if you go at it with the mindset of simply knowing where every $ is going, I think it's tremendously helpful. Or if you're trying to track cash flow because you're saving for something or paying off debt.
I'm also not sure about the "go with your gut instinct". Depending on how you're raised, you might have bad money habits that are hurting you financially, like emotional spending. Being aware of stuff like that is important & like most habits, it usually takes someone else telling you for you to realize it.
Again, budgeting may not be the answer. But being aware of your money habits, how much you spend or save and on what, and planning long time goals are important.
I agree with you. Especially bad money habits can ruin every financial success :)
Also, on a broader scope, just having financial or career blindness. Like, for example, knowing how much you need to make in a year to live comfortably. After taxes. It's very basic, but people aren't taught this & just accept pay thinking it's enough & it's not.
I don’t agree with the premise that budgets are *always* restrictive.
They *can* be, but they don’t have to be. Sometimes they can give you *permission* to spend in an area that you recognize has value in your life, and can help you balance present-moment desires with longer-term goals. If you budget for a vacation rather than spend “instinctively” for it, you can stress less about the money you’re dropping during a trip knowing you’ve set a generous chunk aside for it. You don’t worry as much about what impact that trip is having on your ability to pay for life maintenance (rent, insurance, other every day wants). Budgets keep me clear-eyed about what I want to make space for. They’re a mirror. I’m not judging myself when I look in that mirror, but I get how some people can feel tempted to.
Also, credit card debt at 25% is…not ideal. And there are ways around it! (NFCC.org, balance transfer cards) I don’t think it’s controversial to say that.